Case Problem:
Wombat entered into an oral employment contract with Tony’s Toy Company. Tony’s has orally agreed to hire Wombat for three years as a district manager. Wombat quit his job, sold his house, and moved his wife and five children to another state in order to start the new job.
One month later, Tony’s informed Wombat that things weren’t working out and that his job was terminated.
- Is this contract enforceable under the Statute of Frauds? Remember to carefully read the Statute of Frauds as it specifically relates to oral contracts.
- Is it enforceable under any other theory under which Wombat may recover damages from Tony’s Toy Company?
- Are there ethical considerations that apply to this case?