Hanson is employed as a Chief Financial Officer of EasyMoney firm in New York City,for a salary of $200,000 per year on a three-year contract.His employer terminates Hanson with two years left in the contract.Hanson accepts employment as a financial analyst at a different firm that pays $150,000 per year.Which of the following hold true in this scenario?

Question

Quizplus · Accepted Answer

Hanson can sue his prior employer for breach of contract and seek damages for the salary he would have earned for the remaining two years ($400,000). If Hanson mitigated his damages by accepting a job elsewhere, the amount he earns in his new job will be deducted from the damages he can recover. Therefore, he can sue his prior employer and recover $100,000 ($400,000 - $150,000).

Hanson Is Employed as a Chief Financial Officer of EasyMoney