Canone company sue another company becauseI chose not to work for them even thoughI signed a contract with them and then decided to go to work for the other company?

Asked on November 11, 2011 under Employment Labor Law, Washington


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Company A is the one you signed the contract with; company B is the other company. Company A most likely cannot sue company B on the contract, since company B was not a party to that contract--contracts only bind those who are parties to (i.e. who sign) them. However, company A could potentially sue you for breach of contract-you are obligated under the contract you signed with them. So if the terms of the contract would require you to work for company A or preclude you from working for someone else, at least for some time, company A could take legal action against you. You should review the terms of the agreement.

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