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I currently am under a 1 year employment contract with Boys and Girls Club which commenced Sept. 1, 2019. In the contract it clearly states my base salary and other fringe benefits. However, about one month after beginning the job they may close. Will my contract be honored? I moved from Virginia Beach, VA to Long Beach, WA for this position. What are my options and rights? Thank you, Will
Asked on October 4, 2019 under Employment Labor Law, Washington
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 1 year ago | Contributor
A contract cannot be honored by an entity (e.g. the Boys and Girls Club) which dissolves so it no longer exists. Or even if it does not dissolve, if it ceases operations and has no money to pay you, you cannot as a practical matter, recover any compensation, since a contract does not make money appear where there is none. If your contract was personally with a human being (i.e. with the club's director or president), you can enforce it against them (i.e. sue them), but if it was with the club, it is only enforceable as a practical matter if the club stays in existence and has money to pay you. A contract with an dissovled or insolvent entity is essentially worthless.
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