ABC Co. is a company located in Maryland. It agreed to a two-year employment contract with its Vice President (VP) at an annual salary of $200,000/year. After one year, however, ABC terminated VP’s employment without cause.

Soon after her termination from ABC, VP was offered a job as a Manager at XYZ Inc., a Maryland-based company, for a salary of $200,000 / year.

A few days later, VP was offered a job as a Vice President at 123, Ltd., a California-based company, for a salary of $200,000 / year.

Questions

1a. What are VP’s obligations? Must she accept either job offer? Explain the relevant rule and apply it to the facts to support your conclusion.

1b. What damages can VP expect if she does not accept either the Manager job (in Maryland) or VP job (in California), receives no other offers, and remains unemployed for the one-year period when her contract at ABC would have been in effect? Describe the relevant rule and apply it to the facts to support your conclusion.

2. Imagine that VP ultimately accepts a better position. Her new contract includes an annual salary that pays her $250,000/year. She still wants to follow through with her plan to sue ABC Co., however. What damages can VP expect to receive if she proves her case? Describe the relevant rule and apply it to the facts to support your conclusion.