Full question:
Is it legal for a former employer to require that you sign a "Release of claims agreement" indemnifying them against any/all future claims before they will send you a check for bonus and commission that they agree is due you?
- Category: Employment
- Date:
- State: Maryland
Answer:
An agreement is not a lawfully enforceable contract unless there is consideration between the parties. Consideration is what the promisor demands and receives as the price for the promise. (The promisor is the person making the promise, and the promisee is the person to whom the promise is made.) Consideration consists of something that the promisor is not otherwise entitled to. Consideration is the price paid for the promise. When thinking of consideration, think in terms of legal value as opposed to economic value. While economic value (e.g., money) is the most common form of consideration, consideration does not have to involve money. In order for a contract to be enforceable, each party to the contract must change his or her legal position in some way. If an agreement lacks consideration, it is generally not a binding and enforceable contract.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
