Contract Law

1. Making sure your contract is enforceable. That is, making sure all the elements necessary for a legally binding agreement are in place. These elements include:
   1. Both parties have the same understanding about what is at stake—i.e. the seller and buyer of a Mustang must both know they are talking about a car, not a horse.
   2. One party has made an offer and the other party has accepted (all counter-offers and negotiations have been completed).
   3. The parties are exchanging something of value.
   4. The agreed-upon action has taken place—i.e. the work is completed, the money paid, the product delivered.


2. What to do when the contract has been breached. It is unfortunate, but sometimes a contract is broken. Since a contract is a legally enforceable agreement, a breach of contract has legal ramifications and the injured party can sue to seek damages or ask a court to force compliance.
   
   There are, however, numerous defenses to a breach of contract (which can void the agreement), including:
   1. Both parties made a mistake in the agreement;
   2. One party made it impossible for the other party to live up to their part of the agreement;
   3. Age or incapacity of one of the parties;
   4. Terms of the agreement were illegal;
   5. One of the parties engaged in fraud.

At Plachta, Murphy & Associates, we prefer to settle contract disputes, wherever possible, through negotiation to save you time and attorney fees. But if litigation becomes necessary, we pursue your legal remedies as your legal advocate from a position of integrity and strength.

Employment Law

Employment Law covers every aspect of the employer/employee relationship:

Of course, Employment Law also covers grounds for a suit when a business relationship is severed or a dispute occurs. Our legal expertise in this important area includes the following:

1. Federal workplace regulations: This is where the alphabet soup of acronyms comes in, and our Business Law attorneys are familiar with all of them and can help make sure business owners are in compliance with all of them – OSHA, ADA, FMLA, etc.

2. Employment contracts: This is a tricky area, and our attorneys can help employers balance the advantages and disadvantages of offering employment contracts. Employment contracts typically cover duties, salary and benefits for the set duration of the contract, length of notice needed to end employment, severance to the employee if employment ends before the terms of the contract; they may also include confidentiality clauses and prohibitions on competing directly with the company if the employee leaves.

The advantages we promote in drafting contracts for clients include clarity and security. The duties of the employee are clear, so it’s also plainly evident when expectations are not being met. If the employee leaves, the previous employer knows the prior employee cannot reveal company secrets or compete directly (i.e. steal clients) for a given period of time. The main advantage to the employee is job security, because unless the contract is re-negotiated, the employee knows that the job will last at least the length of the contract.

The disadvantages come in when business needs change. The employer can’t simply let go of an employee with a written contract if the business changes and that position is no longer necessary or if it is no longer funded. The employer also cannot unilaterally change the employee’s benefits situation. In such circumstances, the contract must be re-negotiated.

3. Employee handbook and evaluations: We encourage business owners to have an employee handbook and to conduct regular evaluations. They are good tools to maintain clear communication about employer expectations, but also to establish the employer’s fairness (because everyone is subject to the handbook and everyone gets an evaluation). This pattern of fairness can be important if the employer must fire the employee, since it can provide good documentation of missed expectations and chances for the employee to improve.

There are ways for employers to trip up here, however. Employers need to make sure that the wording in the handbook and anything they say in an evaluation cannot be construed as an implied contract.

4. Severing employer/employee relationship:

1. Firing: It is rarely pleasant to fire someone, but our attorneys can help employers do it such a way as to reduce their chances of being sued. First, make sure the employee is not being fired for an illegal reason (i.e. age/racial/gender discrimination). Second, regular evaluations can prepare the ground for firing an employee for nonperformance. Third, Michigan is an at-will employment state, so employers are well within their rights to let go of an employee who is no longer needed. Finally, we provide our clients with a checklist of legal do’s and don’ts when terminating an employee.

2. Being fired: Employees who have been fired or are about to be let go should remain calm and not agree to anything right away. Our attorneys help negotiate a severance package or determine whether the termination was unjust and there are grounds for a legal suit.

Our Contracts & Employment Team:

Brian J. Plachta, Attorney, with more than 20 years of experience in Business, Corporate, and Real Estate Law.

Miles J. Murphy, III,Attorney, with more than 20 years of experience in Commercial Law and Civil Litigation.

Ryan M. Huizenga, Attorney, who specializes in Business Transactions, Business Law and Civil Litigation.