IfI have a binding contract for reimbursement of hiring/training/education expenses do I have a legal responsibility to pay it back?

I owe money for tution, salary, testing, uniforms (which were turned in). Do I have to pay back? It’s $15,060.66 and has to be paid in 12 months.

Asked on December 2, 2011 under Employment Labor Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Your question answers itself--a "binding" contract is enforceable; if under the contract you have to repay these expenses, then that contract is enforceable and you can be sued to recover the money if you do not pay voluntarily.

To escape payment, you would need:

1) Some contingency or circumstances in the contract under which you don't have to pay, and that contingency or circumstances happened;

2) The other party to the contract breached it in some significant or material way relating to the expenses--for example, didn't actually provide the training or education it claimed it did and for which it is seeking reimbursement; or

3) The contract was based on some material misrepresentation (or lie) made to you.

The above could, depending on the exact facts, provide grounds to not pay; otherwise, you would seem to be required, in the face of a binding contract.


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