Non-compete Ohio
I signed a non compete agreement back in 2003 as an independent contractor for sales. Included in the agreement was the commissions I was to receive for my sales. In 2005 the commissions were decreased and a new non compete was not signed. Would that first agreement stand up since the terms were changed by the employer. I left the company back in June of 2007 and still did not receive all the commisions owed to me. Thank you for your time.
1 answer | asked Apr 30, 2008 12:30 PM [EST] | applies to Ohio
Answers (1)
Voiding a non-compete for failure to pay commissions
If the employer fails to perform a material, or major, part of the non-compete bargain, you may be able to avoid the non-compete. The legal theory is that, if one party fails to perform an essential part of the bargain, the other side can "rescind" the agreement, as though it never happened. Courts are not crazy about allowing one party to rescind an agreement, however, and require that the breach is significant.
Whether or not the agreement to pay a specific amount of commissions was a material part of the bargain will depend on your employment agreement. Whether or not the failure to pay the promised commissions is a significant breach of that obligation depends on the amount of the unpaid commissions.
Best regards,
Neil Klingshirn
posted by Neil Klingshirn | Apr 30, 2008 1:35 PM [EST]
If the employer fails to perform a material, or major, part of the non-compete bargain, you may be able to avoid the non-compete. The legal theory is that, if one party fails to perform an essential part of the bargain, the other side can "rescind" the agreement, as though it never happened. Courts are not crazy about allowing one party to rescind an agreement, however, and require that the breach is significant.
Whether or not the agreement to pay a specific amount of commissions was a material part of the bargain will depend on your employment agreement. Whether or not the failure to pay the promised commissions is a significant breach of that obligation depends on the amount of the unpaid commissions.
Best regards,
Neil Klingshirn
posted by Neil Klingshirn | Apr 30, 2008 1:35 PM [EST]
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