Law, Business, and Society 9th Edition by Tony McAdams

Exercise 30

Preference Personnel, a North Dakota corporation, entered a contract with Peterson to help him find employment in the tax law field. The contract provided that the employer would pay the placement fee, unless Peterson voluntarily quit within 90 days, in which case he would be responsible for the fee, which was 20 percent of one year's salary. Peterson was placed in a job with an annual salary of $60,000, but he quit after one month. Peterson refused to pay the fee, and Preference sued for breach of contract. The lower court found that Peterson breached the contract, but at the time of the contract, Preference Personnel's state-required license to operate had been allowed to lapse. The court, therefore, dismissed the Preference claim ruling that the agreement was unenforceable as a matter of public policy. Preference appealed. Rule on that appeal. Explain. See Preference Personnel, Inc. v. Peterson, 710 N.W. 2d 383 (N.D.S.Ct. 2006).