A reading of the entire contract, however, indicates that the plan was not intended to apply to someone who was fired for cause. What is the correct interpretation of this contract?

Jump to Solution
Category:

A reading of the entire contract, however, indicates that the plan was not intended to apply to someone who was fired for cause. What is the correct interpretation of this contract?

0
0

Louie E. Brown worked for the Phelps Dodge Corporation under an oral contract for approximately twenty-three years. In 2016, he was suspended from work for unauthorized possession of company property. In 2017, Phelps Dodge fired Brown after discovering that he was using company property without permission and building a trailer on company time. Brown sued Phelps Dodge for benefits under an unemployment benefit plan. According to the plan, “in order to be eligible for unemployment benefits, a laid-off employee must: (1) Have completed 2 or more years of continuous service with the company, and (2) Have been laid off from work because the company had determined that work was not available for him.” The trial court held that the wording of the second condition was ambiguous and should be construed against Phelps Dodge, the party who chose the wording. A reading of the entire contract, however, indicates that the plan was not intended to apply to someone who was fired for cause. What is the correct interpretation of this contract?

Explanation & AnswerSolution by a verified expert

Explanation

The agreement may not be meant to be pertained to an individual who may have been discharged for the wrongdoings and not because work was not available.
In this case, Person B may not be qualified to reclaim under the plan of action as Person B was fired for a reason, which was that he had unauthorized access to company's land.

Verified Answer

In this case, the settlement may be in the favor of Person P. While scrutinizing the agreement, it may be noticed that no vagueness existed, and the contract is not applicable if a person is fired from the firm because of some cause.

Purchase this answer to view it. $5
Login/Sign up for free, load your wallet instantly using PayPal or cards and purchase this solution to view it.

Looking for the solution to this or another homework question?

If you need essay writing assistance or homework solutions, log in or sign up for a free account and ask our writers any homework question.