Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 1

Judy agreed in writing to work for Northern Enterprises, Inc., for three years as superintendent of Northern's manufacturing establishment and to devote herself entirely to the business, giving it her full time, attention, and skill, for which she was to receive $72,000 per annum in monthly installments of $6,000. Judy worked and was paid for the first twelve months, when, through no fault of her own or Northern's, she was arrested and imprisoned for one month. It became imperative for Northern to employ another, and it treated the contract with Judy as breached and abandoned, refusing to permit Judy to resume work on her release from jail. What rights, if any, does Judy have under the contract?