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Breach of Contract Need to Pay Penalty

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1 Breach of Contract Need to Pay Penalty on Mon Jul 25, 2011 12:52 am

mrmagoo


Arresto Menor
my last company is threatening to file a case against me because of breach of contract.
i signed my job offer letter (not the actual contract) which states that i have to serve 2 months notice in case i want to resign. it also states that less than 2 months notice would require me to pay 2 months worth of my monthly salary. this is as it states because of the damages it will cause the company.
i didn't serve the 2 months notice but instead just served 1 month notice.
on my last day for the company, i had to talk to their lawyer and the lawyer reminded me of the penalty i have to pay. i kind of said yes if they could lessen the amount. some 2 months later of no communication i got a letter from the legal office that i have to pay in 5 days or else they will file a case against me. the amount was lessened some 40k because i guess of my backpay and pro rated 13th mo pay.

questions:

1. do situations like this really lead to court? i mean, i think they'd be spending a lot of money and time right?

2. what would be a good defense if ever it does go to court? can i say that, the client i worked for (coz we're consultants deployed to clients) did sign the 'transition document' stating that i have successfully transitioned my work so i'm thinking that the damage to the company is not really that bad since there already was a replacement for me before i left?

3. and if i lose, how will they collect the money? i mean, if i have a house or a car, will they take it from me or something like that? and i have never told them that i won't pay. i just say that i am willing to pay if they will divide it in 12 months.

4. what are the chances of me winning?

5. there is no way i'll go to jail for this right? i mean, civil case lang to di ba?

thanks.

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2 Re: Breach of Contract Need to Pay Penalty on Mon Jul 25, 2011 10:26 am

it is basic precept in contracts law that the contract is the law between the parties. the provisions of rendering two month notice were provisions you agreed fully with your employer; thus must be complied with. any violation is considered a breach of contract.

the expenses of litigation are no longer your concern especially so that your employer has its own counsel.

i suggest you settle the differences with your employer.

you certainly breached your obligation under the contract.

a civil case does not involve imprisonment but you can be held liable for damages. note however, your professional background may be tainted if this case will go to court.

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3 Re: Breach of Contract Need to Pay Penalty on Mon Jul 25, 2011 12:04 pm

mrmagoo


Arresto Menor
lawddesign wrote:it is basic precept in contracts law that the contract is the law between the parties. the provisions of rendering two month notice were provisions you agreed fully with your employer; thus must be complied with. any violation is considered a breach of contract.

the expenses of litigation are no longer your concern especially so that your employer has its own counsel.

i suggest you settle the differences with your employer.

you certainly breached your obligation under the contract.

a civil case does not involve imprisonment but you can be held liable for damages. note however, your professional background may be tainted if this case will go to court.

thanks! so how will they collect the damages if i lose? will they just keep on writing me letters? or will police officers (or whoever) go to my house and survey what properties they can FORCEFULLY take away from me?

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4 Re: Breach of Contract Need to Pay Penalty on Mon Jul 25, 2011 1:08 pm

it will take sometime before the levy or seizure of your property.

i suggest before they could file a case for breach of contract with sum of money and damages, make a reasonable settlement with them.

it would taint you professional reputation if there is already a pending case which might affect your employment here or in case you apply abroad.

the levy or distraint would take effect only after a judgment is rendered by a court where the case is filed and heard.

it may either seize your bank account or levy on your personal and real property. before, they could do so, i suggest you settle the matters amicably to avoid the hazards of litigation. this may include hiring an attorney to represent you so why not just settle at this early stage.

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5 Re: Breach of Contract Need to Pay Penalty on Mon Jul 25, 2011 1:29 pm

mrmagoo


Arresto Menor
oh ok.
the 5 days they said that they will file a case is 3 weeks due now.
the last action i made was email the attorney and the HR department that i wish they could lessen the amount more plus let me pay in 12 months since i served a 1 month notice anyway.
the HR replied "Noted." but nothing from the attorney.
i guess i'll wait for their reply again if they will grant my request.
if ever i again receive a letter again this time saying that they already have filed a case against me for not taking any action, can i defend myself saying i was waiting for their reply for my request that's why i was not taking any other action?

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6 Re: Breach of Contract Need to Pay Penalty on Mon Jul 25, 2011 3:30 pm

mrmagoo


Arresto Menor
what's a reasonable settlement nga pala? may sense ba yung 12 months payment na request ko?
if you're going to materialize the "reasonable settlement" you've mentioned, what would be the range? do you mean the whole amount of obligation or a certain percentage?

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