united-states contract-law workplace
Am I out of my contract with my employer if they broke it first?
<p>When I signed onto my job, it was written into my contract that I would get a 'Hiring Bonus' of $5000 that would be paid over the course of my first year and if I left early, I would have to pay it back. Well, I ended up receiving the allowance in one large lump sum along with my first paycheck. I alerted them to this mistake and they seemed to not care/nothing happened about it.</p>

<p>Since they technically broke the contract, does that mean the entire contract is invalid?</p>

<p>First of all, there is no breach - they said they would pay it "over the course of the first year"; in what way is the first week not part of the first year?</p>

<p>Second, breaching a contract doesn't always allow the aggrieved party to terminate it: in fact, being able to terminate is only for the most egregious of breaches or ones that are specifically spelled out as giving a right to termination. For example, failure to deliver (or pay) on time or in full would not allow termination, only damages.</p>

<p>Not a lawyer, education purposes only, etc., etc., contact a lawyer, etc., etc.</p>

<p>If the terms of payment clearly stated you would be paid X each month for Y months, with X times Y equal to $5k, and they then proceed to pay X times Y equals $5k on the first month and refuse to pay anything for the other (Y - 1) months, then I think that yes, technically they have failed to live up to their obligations under the contract and you have recourse as provided by your agreement and/or the Law.</p>

<p>That said, there are mitigating factors here:</p>

<ol>
<li><p>It would seem that this breach is in your favor. If you believe it is not in your favor, you should be prepared to present a compelling case as to how this breach has harmed you. If you can prove damages, then you will be entitled to be made whole.</p></li>
<li><p>You have received the payment and, while you complained, you did not indicate you have refused and/or returned the payment. If your actions could be construed as acceptance of the payment in advance, enough reasonable people may believe that you agreed to a modification to the original agreement. That the company doesn't care is just a bargaining tactic; if you care, you need to take steps to protect your interests.</p></li>
</ol>

<p>Maybe more. What happens in the event the agreement is breached is determined by the Law, the agreement itself, and finally by what is found to be equitable at trial. </p>

<p>They can obviously argue that they paid over the course of the year in one annual payment :-) What they did is in your favour; if you don't like it you can easily fix the problem by only touching $416.67 of the money every month. </p>

<p>I personally wouldn't try to use this as an excuse to claim a breach of contract and then break the contract myself. If you break that contract and get taken to court, I don't think anybody would agree with your interpretation. If you think about breaking the contract, either don't, or contact a lawyer first. </p>
