One of my employees signed a rubbish hauling contract on behalf of my company. The contract was for 3 years and stipulated that if I didn't cancel via registered mail no more than 180 days and not less than ninety days the contract would automatically renew. The hauling price doubled in 3 years and I told the hauler to pick up his dumpster. Now he says I owe him liquidated damages equal to 6 months hauling. Can I defend and win this for less than the $900. damages his trying to collect? Can the liquidated damages include his fuel surcharge?
It depends on their contract. And urs....is the employee listed as a decision maker in the business? this is on paper....if so....what is their contract like? were they allowed to go up in price? because a futures contract has to outline all those......and if it does, then u are stuck....but...if the person is not a decision maker, then the employee is at fault...so he will be the one who has to pay...but.at the same time.
The judge will ask why you didn't cancel if you had 180 days? well, more like 90 because the first 90 doesn't count...Especially if that person is not the decision maker...because you cannot just throw someone out to sign a contract. And when u don't like it, u say that he is not the person who is supposed to sign. Judge wil see that as a way to get away from contracts...so, therefore,.
You must read their contract...see what it says....if by chance you find something that showed that they were supposed to do. And didn't do. Then u can stop the contract, for breach of contract...that's the only way out...other then that....u can throw the worker at fault...if and only if the person who signed is not a decision maker...and u might walk away almost unscathed....but, if the worker is..then the company has to honor it...and 900 dollars? well, i don't know...depends on what claim...small claim? what are they asking for in damages? see...its all relative to your situation...