Contract providing lifetime employment


Case Scenario:

Since 1990 Laura Martinez had been employed full-time as  housekeeper for  Zach Taylor’s huge house in  Bel-Air.   On 1 April 1996 Taylor said to Martinez during a conversation:  “You don’t need to worry about unemployment – I promise that I will employ you to work for me for the rest of your life or until you decide that you would like to retire.  Your salary will always be at least $5 per hour above the minimum wage”.  No written memorandum of this agreement was ever prepared.  On 2 January 2000 Taylor said to Martinez “I’m in real financial trouble – I intend to sell the house and move into a bungalow at the Beverly Hills Hotel.  I won’t need a housekeeper any more.  Your last day on the job will be 1 April 2000”.  Martinez, claiming that she had a contract providing for lifetime employment, filed suit for breach of contract.  Will Martinez’s suit against Taylor be successful?  Explain.

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Business Law and Ethics: Contract providing lifetime employment
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