How can I get out of contract?

Also as I described I am willing to pay the prorated amount because of my integrity as in the contract. He is ignoring that and wants full payment.

 

That's good on you. You've got the contract. Go by it.

 

What governs this contract is not some opinion on an internet forum. It is governed by the laws of the state as well as the terms of said contract. Because I am not privy to the terms I can't say one way or another. I do know that in most cases a contract can be assumed by a 3rd party in case of a business goes bankrupt. Many years ago my father used a local finance company to finance the vehicle my mom drove. That finance company went out of business and that loan (contract) was bought by another finance company. Dad paid the loan off and got the title. This is generally how this works. If there is no recovery language in the contract the business has to just deal with the terms and obey them going forward. In this case, there is the school. This is why I suggest getting a real Attorney to listen to the story as well as go over the contracts.

 

Work for him for a year. The company broke the contract because there is no longer a place for him to work for a year. In that case, the company should continue to pay him. It's part of the contract.

 

The contract was broken by the company when it folded. Unlike an employee quitting and owing whatever amount of money from schooling being paid for, this was a situation where the rug is pulled out from under the employee. The employee has 0 control on whether or not the business remains in business. Again, the company, not the employee, broke the contract. That's the end of the story there.

 

NO! It's not! Contracts get bought and sold every day in the US! There are actually 3 parties to this. I suspect the actual contract was between the OP and the school. It is difficult t say for sure about anything until we know the terms of the contracts and who contracted to who. As to buying contracts. RIGHT NOW I know a man that just bought a contract.

As to the business. They are either out of business totally or the man just stopped operating. It's difficult to say one way or another on this subject! This is why I have been recommending making an appointment with an Attorney versed in Contract law.

 

One last very important point! There may be a contract between the school and the business none of us know about. It may be that contract that is actually broken. In this case, I would just go looking for another job and take this matter day by day. Again, we need to know what contract terms are governing things like the business going out of business. NONE of us have enough information to say one way or another.

 

I was reading this comment again and wanted to bring out some comments based on my thoughts. First, I suspect this is an actual contract is between this person and the school. (in fact, it is better for them if it is). Most of the time company financed school works this way. The school has an arrangement with one or more carriers to get a person a CDL, then that person goes on to that carrier and trains. Of course, we could be talking about a trade school paid for by the business. I know several small carriers that have done this and there are NO school contracts. Until This person gives us some more info we can only guess. I have no plans to do this but I am good friends with a man that helps run a driving school that has 5 locations all over the US. They are contracted with several carriers to get people a CDL. I suspect if I called him and asked what happens if a carrier goes belly up before a contract is finished I think I know what he will say. I suspect he will say we will do everything we can to fit that person with another carrier. Most of the time something like this is easy.

I debated mentioning this because right now nothing has happened. I have learned a top 50 carrier is close to ceasing operations, they may soon be bought out by a larger carrier. Small carriers are stopping operations all the time. I have been hearing that the price of diesel is hitting agriculture so hard that some farmers are not planning to harvest. This is why I have been so active with advice to use a trade school and not go via company financed right now IF you can.

As to this comment? Until we know more all I can do is advise finding an Attorney to consult, and finding another carrier that will assume that school contract IF this is who you have the contract with.

 

Fortunately, the business owner agreed today that I will only be responsible for the pro rated amount of 71 days from the contract and will deduct it from what he owed me. So I will pay $566 of the contract.

 

All of what you present makes a ton of sense.