What is legal in the terms of a sales contract?

UPDATED: Oct 1, 2022

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What is legal in the terms of a sales contract?

I am working for a company that is downsizing. It is at an event center and we have advertising space throughout the building to sell. I am proposing to our director that I could make sales to some of my contacts that would bring in more sales than the current sales person. If I create, say a 3-year contract for signage and advertising in the building for X amount of dollars per year, if I can have a clause that the terms of the contract is void if the sales person is no longer employed with the company so they may cancel after 1 year if I am let go. Is this legal for me to consider doing?

Asked on September 9, 2017 under Employment Labor Law, Minnesota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Essentially anything not inherently illegal (like a contract to discriminate in employment, to commit a crime, to sell drugs, etc.) may be legally made part of a contract. Therefore, what you propose would be a legal component of a contract. Of course, that does not mean that your director will agree to it, but if he/she did agree, it is legal.

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