Employment Agreement-Michael Kors, Research Paper Example

One of the most common contracts that people will encounter is contracts of employment, or employment contracts. These contracts are an agreement between the employee and the employer in order to set out the terms of the contract involving the duties, responsibilities, and rights of the employee. For this paper, that is the case, as embarking in the field of business, an employee contract is common when working for companies from the ground up. The following contract to be analyzed is the employee agreement between Michael Kors (USA) Inc., Michael Kors Holdings Ltd, for an executive position. In providing a copy of the contract, it can confirm that the contract between the employee and Michael Kors Inc., was a written contract that outlines the terms of the contract. Throughout this paper, the purpose is to provide a contract analysis on the employment contract, in order to establish legal understandings of the different concepts, as well as legal factors that both parties must abide to.

In evaluating the employment contracts, there are several basics that must be followed. The components that need to be provided includes contract formation, terms of the contract, duties outlined, are they any defenses, contract are then breached, and the possible solution spelled out for a breached contract. The first component of analyzing the contract is establishing that the contract is valid or exist, which can be enforceable in the courts. These five elements that need to be met within a contract includes; offer, acceptance, consideration, capacity, and purpose. Michael Kors Inc. initiated an offer to the executive, in which the offeree has accepted the offer by signing the contract. However, before the executive signs the contract which would be considered in the acceptance of the executive. The contract of Michael Kors, their intention of an offering the executive at the store, the contract is to be legally enforceable. The enforceable promise that is presented within most contracts, but for this contract there was no mention of commitment or promise on the behalf of the company. Instead, the contract lays out the terms, which can give to support to the factor of contraction formation. The terms of the contract spell out the start and finish of the contract duration, as well as their option to renewal, based on the attitudes of Michael Kors. This means that the outlined duties and responsibilities expected of the employee must be followed, or the employee would be in breach of contract. In this case, Michael Kors is able to take legal action.

The terms are presented in contract clauses, as well as the job duties, and responsibilities.  The terms outline must be accepted under the common law, to be accepted by the executive. This is also relevant for the legality of purpose, in which makes the contract legal and binding.  Employment contracts are governed by Common law since they deal with identify of offer, nature of work, performance time, price, and quantity. Since the executive signed the Michael Kors’ contract then they accepted the offer, in which a contract is formed. Consideration is another factor of contracts, for the offeree or the executive; he must consider the terms, compensation, termination of employment, and many of the representation and certain covenants.  Compensation another component of the contract outlines the base salary, which also points to an increase in pay, the factor of periodic reviews of compensation, and the eligibility of the annual bonus. Under the contract, and under the law, companies have to provide their employees with benefits, outlined in the contract is the benefits during the Executive’s term, which includes insurance, 401K, and other programs and benefits. Also outlined in the contract is compensation for expenses that will be spent by the executive, the Equity Incentive Plan for stock options, taxes to be paid, terms of vacations, and terms of the termination of employment.

The executive covenants within the contract, means that they are enforcing fiduciary duty, in which the executive will not be able to work for another organization. The legal capacity, another factor of the contract is self-explanatory as the employee must be competent, an adult, and not a prisoner, and signed by their own will.  Within the executive covenant is the Termination of Employment terms, which includes disability and death, when they cannot perform their duties for at least 90 days. Additionally terminate for cause (breach of fiduciary duty, fraud, dishonesty, gross negligence, etc.), in which the employee and employer agree to by signing the contract. While also including the terms of breach of contract, in which the contract is terminated.  The executive covenants also includes the non-competition clause, waiting two years after the termination date to be rehired by similar company, non-disparagement, and possible remedy for modification or breach of contract terms. While these terms can seem unreasonable, there are necessary to protect against unfair competition.  Included in this contract also is a miscellaneous sections in which points out the representation, that the executive is bounded under the contract to only be represented by the company, and no other conflicting agreements. Additional notifications of the contract will be made in writing, hand delivered, or through certified mail. Pointing out the validity of the contract under New York law, and common law, and any dispute will go to arbitration.

The employment contract presented from Michael Kors and the Executive, points out the basics of employment contracts in which Michael Kors has made an offer to the Executive, following the common law, and laws of New York, to provide a legally binding agreement. The contract provides terms of employment, compensation, termination terms, and other useful information that shows offer, acceptance, legal consideration, legality of purpose, and legal capacity. This contract met all of these validations, and should be held for the duration of the contract. The employee should be well satisfied with the offer, as well as the consideration for terms in the contract, good compensation and benefits, and greater duties and responsibilities that showcase their level of importance. In addition, as their sign of acceptance of the offer, the Executive signed the contract, after having read, understood, and agreed with the terms of the contract.

Works Cited

Contract: “Employment Agreement-Michael Kors (USA) Inc., Michael Kors Holdings Ltd. And Lee S. Sporn.” Onecle. 2013. Web. 9 March 2015. http://contracts.onecle.com/michael-kors/sporn-emp-2013-05-23.shtml