How can I get out of contract?

Thank for the feedback guys. It was a small company I worked for who owned one truck as a side business. The contract was with the owner of the Business and me. It says that will work for 1 year in exchange for him to pay for me to go to school. 71 days after the contract was signed he closed the business which did not give me the opportunity to work a year for him. He also did not give notice until the day I got back he said he was going to shut down the business and had no money to pay me for the week and would apply that to what was owed on the contract.

 

My position was eliminated because he shut the company down. Up until that point he was very happy with my performance. He just wasn't getting loads that paid enough. I was just a driver.

 

It was a small company he owned as a side business with one box truck. His intention was for me to get my CDL and he was going to purchase a tractor. However he wasn't getting enough for his loads and decided just to shut it down leaving me on the hook for a 1 year obligation that I know have no opportunity to complete.

 

This is what I typed and sent him today.

Jo
This has not been sitting well with me to be liable and held to this contract with the expectation of paying for the schooling when you chose to shut down the truck. This is not fair. It was not my responsibility to keep the company in business. I was not let go due to performance, but with you eliminating the position by shutting the business down.
I had a friend of mine who is a corporate attorney look over the contract.
The contract is in default in several ways.
For example, page 4 section 14. "Terminating the agreement". "A material violation of this agreement". This applies to page 6 section 23 where it is written that this is a year contract. I was not given the option to work the agreed upon year to fulfill the contract, therefore ERT defaulted on the contract. You are placing the financial burden of ending the business and therefore the contract on me. It was your decision to end the business.
The part I forgot about that my corporate attorney friend pointed out to me is that I was to be paid $250 a day for every day I am on the road as stated in the contract beginning when the contract was signed April 15th. You paid me $200 instead of $250 for 31 days from May 20th to July 27th. That is a balance owed of $1550 in back payments owed to me plus the $809. ($2359 total owed to me).
Should we agree that I am responsible for a portion of the contract that I worked before you shut down the business then that would be from the date of the contract of April 15th to July 27th. That would be $566.49. (Based on $3000 divided by 365 days = $8.21 a day x 69 days)
Bringing the money owed to me of $2359 - $566.49 (69 days) = 1792 owed to me after 69 days of the contract in place before shutting down the business.
I am willing to just call it a wash and we both walk away with lessons learned. However, should you decide to go to arbitration as the option states on page 5 section 17, then I will seek the balance pay owed.
Under duress of not being paid for the work I did, I felt I was given no choice but to pay this contract or I would not be paid any of the money I was owed or the out of pocket money I spent that needed to be reimbursed. (Money that on june 26th you clearly stated you would reimburse, then the next day, my last day said you could not and would not after I already spent it towards your company)
Also, I was not given notice until the my last day of July 1st that you were not going to be continuing the business.
I was advised I am not liable and to refrain from moving forward. (Against my attorneys advice, I am willing for us both to just wipe the slate clean)

 

Personally, I would say leave it alone up until a notice of payment required appears.

 

He broke the contract, not you, so you owe him nothing. Don't pay him a dime more. You are not financially responsible when the business goes under and you have no say in the running of the business. It's unfortunate for him that he had to close his business, but that's part of the risk a business owner takes.

 

I appreciate the feedback. Thank you for replying.
Rob

 

How? He paid for the school and gave him two options. Work for me a year and it's free or pay for it if you don't. Since he can't work for him. He should pay him back for the school.

Just because the company holding your mortgage goes bankrupt. Doesn't mean you get your house for free. You just now owe some one different.

Where did the integrity of people go? Thinking that you should not pay for something you got.

To the poster of the question. If you are an honest person. Who has integrity. Pay him back. Just make arrangements for it to be done over a year.

 

The contract does state the the cost will be prorated if terminated. My integrity is still intact.