In 1986, Amstel´s Inc. suspected and accused one of its employees, John Cuck, of
ID: 3501174 • Letter: I
Question
In 1986, Amstel´s Inc. suspected and accused one of its employees, John Cuck, of theft. The Union to which John belonged negotiated an oral contract with Amstel´s whereby John agreed to accept a permanent layoff if Amstel´s would not report the suspected theft tp the state´s unemployment agency, so that John could collect unemployment benefits. Amstel´s reported the suspected theft to the state´s unemployment agency, and John was denied unemployment benefits. John sued Amstel´s for damages for breach of contract.
Explanation / Answer
John would not get compensation because negotiations can not be subject to contract and if they are there wouldn't be any oral contract. Therefore the negotiating oral contract isn't valid.