DiFolco and MSNBC entered into a two-year employment agreement for DiFolco to work as a television commentator covering the entertainment industry. MSNBC had the right to terminate the agreement after the first year by giving DiFolco 60 days’ advance notice. DiFolco’s first eight months of employment were tumultuous, and she had several disputes with her supervisors over her assignments and working conditions. Through a series of e-mails, DiFolco complained to her supervisors about being forced off the air because of MSNBC’s change in schedule and coverage. One of these e-mails indicated that DiFolco wished to have a meeting to discuss her exit from the shows and to give MSNBC ample time to replace her. In that same e-mail, however, DiFolco also wrote that she wanted to be part of the MSNBC team “for a long time to come.”

Nonetheless, MSNBC took these e-mails to mean that DiFolco intended to repudiate her contract and sent her a proposed separation agreement claiming that she had resigned. DiFolco filed a breach of contract action against MSNBC.

CASE QUESTIONS

1. Who prevails and why?

2. If you received an e-mail from an employee that concerned her

“exit,” would you believe she was quitting? Is the situation with DiFolco any different?