Legal Question in Business Law in California
Termination of a contract.
I have a written contract/agreement with another person in which the
termination section reads as follows:
''Termination: This agreement shall remain in force until terminated by
30 days notice by either party. Commissions shall be payable only to
date of termination.''
Which is the proper notification to terminate them as of July 1, 2003:
A. Notify them as of June 1, 2003 - commissions payable until June
30, 2003??
B. Notify them July 1, 2003 (effective immediately) - commissions
payable until July 31,2003?
2 Answers from Attorneys
Re: Termination of a contract.
You must notify the other party 30 days in advance of the July 1 date of termination.
Re: Termination of a contract.
Mr. Cohen has told you when you must give notice. You should also be aware that you must pay commissions for work prior to termination, even if the time for payment would ordinarily be after July 1. Labor Code �2626 provides:
"� 2926. Employment for unspecified term; Compensation upon dismissal
An employee who is not employed for a specified term and who is dismissed by his employer is entitled to compensation for services rendered up to the time of such dismissal."
Therefore it is the date services are rendered, not the date commissions are to be paid, which controls.
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