If a company signed a 3 year contract with the union and decides to shut down after 6 months, is that a breach of contract ?
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If a company signed a 3 year contract with the union and decides to shut down after 6 months, is that a breach of contract ?
Asked on November 19, 2012 under Employment Labor Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Whether there is a breach of the written contract that you are writing about depends upon what the terms of the agreement state. As such, you need to carefully read the document to see if the shut down by the company equates to a breach of the contract or not. Sometimes companies shut down due to economic reasons alone.
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