united-states contract-law business
What law requires payment of a termination fee as outlined in a contract?
<p>My employer canceled on me (I am a contract worker) and didn't pay the termination fee we discussed. I want to show him the actual law so that he may understand that he should pay me because I have a legal right. The fee was written in the actual contract. </p>

<p>It isn't ordinarily written in law.  The only law directly pointing this out would likely be if you can show a court case with similar facts where an employer was made to pay.</p>

<p>Parties have obligations under contracts, which in most cases are established by the contract itself rather than the law.  Those obligations are enforced by bringing a lawsuit in court for "breach of contract."  (Or, if the contract specifies, going to arbitration).</p>

<p>If a party refuses to honor their contract, the typical next step is to have a lawyer to write the party a sternly worded "demand letter" on law firm letterhead that makes the party realize he, she, or it has a legal obligation and it will be cheaper to pay than to fight.</p>

<p>Contract law is common law, not statute law, that is, there is no piece of legislation that you can point to and say "there's the law".</p>

<p>What you need to do is find cases, preferably decided in your state that support the enforcement of such a clause and quote the cases to the principal.</p>
