Person S entered in to an agreement of employment with company H. The agreement permits six months severance pay for involuntary termination. Person S decided to resign from his employment otherwise he will be fired for unproven misbehaviour. At the time of person S’s resignation, he signed a statement for suing his earlier employer as a consequence of his job. The person S filed a sue against his earlier employer for severance pay arguing that, signed the statement under threat. To discuss: Whether person S is accurate in his decision.

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Chapter 11, Problem 20CP

Summary Introduction

Case summary: Person S entered in to an agreement of employment with company H. The agreement permits six months severance pay for involuntary termination. Person S decided to resign from his employment otherwise he will be fired for unproven misbehaviour. At the time of person S’s resignation, he signed a statement for suing his earlier employer as a consequence of his job. The person S filed a sue against his earlier employer for severance pay arguing that, signed the statement under threat.

To discuss: Whether person S is accurate in his decision.

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