Employment Contract, Statute of Frauds - Essay Example

Peterson had the right of being informed of the plans to transfer his employment contract and the ownership of the station in advance. Peterson had a right to resign if he did not intend to extend his contract to Evening news but he will not have any right to claim for redundancy or unfair dismissal pay. If the working conditions in the new employer are worse, Peterson has a right to resign and claim for unfair dismissal pay. Peterson has a right to disagree with the transfer of his employment contract to a new employer. This is when the new employer wants to change the term of the contract, which had been agreed upon by Peterson and the previous employer.

If the employers want to change the terms of the contract for the benefit of Peterson, it will be allowed. If the new employer wants to dismiss or make any redundancy for technical or economic reasons, Peterson has a right to a redundancy payment. The employer should not select Peterson for redundancy because he transferred from another company. (Beatty & Samuelson, 2007) Peterson has a right to enforce the contract between Post-Network and evening News because he was not considered in the transfer of the Station to Evening News yet he had signed a binding agreement with Post-Network as an employer for three years.

It is not ethical for Evening News to prevent Peterson from changing jobs to work for the competing station because Peterson had informed them early of his plan to resign. In addition, Peterson had not entered into any contract with Evening News, as the contract was not changed during the transfer of the station. The previous employer of the transfer did not inform Peterson. Post-Network had a right to transfer the station but should have informed Peterson through a letter in advance that the station is transferred such that Peterson can decide whether to work for the new employer or not. The collateral contract is whereby parties to a contract enter into more than two contracts. Two parties enter into a contract as the main contract and the parties can enter into another contract, which is a collateral contract. Collateral contracts operate to locate the terms, which are outside the main contract. This helps to solve problems of collateral promises, which are sought to be located in the main contract.

Sometimes the main contract should conform to the rules as to form such as being in writing and the collateral contract is not in writing. The collateral contract is used to preserve a promise, which might be enforceable in the future. The collateral contract cannot be reported routinely but can be resorted to where it was intended by to be by the parties that there be a collateral promise of binding effect that embraces in contract collateral to the main contract. (Beatty & Samuelson, 2007) The leading object rule is the only exception to the collateral promise rule. Where the promising party guarantees to pay a debt of someone and the leading object of the promise is some benefit to the promising party, the contract will be enforceable even if it is unwritten. Statute of frauds involving married couples is an exception of one's responsibility to pay another one's debts.

For example, one spouse instructs work to be done on their jointly home and each spouse had the power to do the same work and bind him or herself together. Another exception is the oral promise to pay the person's debt and purpose in making the guarantee serve the person's promising financial attractiveness. Statute of Frauds also requires that any modification to be made should be written and signed by the concerned parties.