Closed Door Bakery Inc (CDBI) is a large company that produces and sells a variety of baked

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Closed Door Bakery Inc (CDBI) is a large company that produces and sells a variety of baked goods. Because of its success in Canada, the company wants to sell its goods abroad as well. It therefore hired Jane Burlington to act as its exclusive marketing agent for Japan. The contract was set to run for 36 months. However, there were two ways in which the contract might be brought to an early end: (i) CDBI was entitled to terminate Jane’s employment at any time, without notice, if she improperly acted in a way that hurt the company; (ii) After 18 months of performance, CDBI had an unconditional right to terminate Jane’s employment for any reason at all, as long as it gave her one month’s notice. The contract worked well for 12 months. CDBI then formed two opinions. First, it correctly concluded that Japan was not a good market for its products. It therefore wanted to get rid of Jane as soon as possible. Second, it honestly came to believe that Jane had taken a bribe from another baked goods company and that she was directing Japanese consumers to the competitor’s products. Although it insisted that it was entitled to fire her immediately, CDBI told Jane that she had one month to leave the company. One month later, she did so. Unfortunately, it is now clear that CDBI was terribly mistaken and that Jane had never done anything wrong. Jane consequently claims that CDBI is liable for breach of contract. Is that correct? Explain your answer. If CDBI has breached the contract, it is liable to pay damages for each month that Jane was out of work as a result of the company’s breach. Jane claims that she is entitled to damages for 23 months. Is that correct? Explain your answer.

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Related Book For  answer-question

Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0132164429

4th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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