BREACH OF CONTRACT_SCHOLARSHIP CONTRACT

Hi, I hope you can help me out regarding my problem.

I had been granted an scholarship with a corresponding contract. The contract states that if i will be able to pass may board exam, i will no longer pay the review expenses and the salary i have received during my review period, however i have to stay with the company for 4 years as LOCKED-In period. In the case that i violate the locked in period of 4 years, I am duty-bound to reimburse the total amount of expenses incurred by my company by the reason of the scholarship plus the payment of liquidated damages in the same amount as incurred by the company. I passed the board exam and currently I am in half way of my contract. Unfortunately, I want to resign from my work.

My questions are:
1. if ever I resign, what are the inclusions of the amount I have to pay?
2. is there any reason for them to sue me, if i violates the contract?
3. what are my strength regarding the case.

Thank you very much for your responses.

giekuletz wrote:Hi, I hope you can help me out regarding my problem.

I had been granted an scholarship with a corresponding contract. The contract states that if i will be able to pass may board exam, i will no longer pay the review expenses and the salary i have received during my review period, however i have to stay with the company for 4 years as LOCKED-In period. In the case that i violate the locked in period of 4 years, I am duty-bound to reimburse the total amount of expenses incurred by my company by the reason of the scholarship plus the payment of liquidated damages in the same amount as incurred by the company. I passed the board exam and currently I am in half way of my contract. Unfortunately, I want to resign from my work.

My questions are:
1. if ever I resign, what are the inclusions of the amount I have to pay?
2. is there any reason for them to sue me, if i violates the contract?
3. what are my strength regarding the case.

Thank you very much for your responses.

1. Check the contract again.
2. Yes - breach of contract.
3. None. You can always say it's illegal for them to force you to continue working with them, but they may be entitled to damages.

they can sue me breach of contract, although it is stipulated on the contract that i can leave the company, wherein i have to pay damages?, and what does liquidated damages mean?

giekuletz wrote:they can sue me breach of contract, although it is stipulated on the contract that i can leave the company, wherein i have to pay damages?, and what does liquidated damages mean?

Liquidated damages (also referred to as liquidated and ascertained damages) are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance).

although the contract states that if ever I violate the lock in period, they can still sue me for breach of contract?

giekuletz wrote:although the contract states that if ever I violate the lock in period, they can still sue me for breach of contract?

the clause is not illegal and you agreed to it.

if i pay the liquidated damages, is there any other reason for them to sue me?

giekuletz wrote:if i pay the liquidated damages, is there any other reason for them to sue me?

They can always sue anytime unless probably if you come to an agreement and have a release and quitclaim.

giekuletz wrote:if i pay the liquidated damages, is there any other reason for them to sue me?

The company have two types of costs concerning such:
/Education.
It's common companies demand the employee to stay a minimum period after the company gave the free education. I believe 4 years are uncommonly long, but you have agreed to it by signing the contract anyway.
/Replacement of you.
If you leave earlier than they expected by the contract, the company will get extra costs by that by they will need to replace you, and the effectivity will be less until a suiting new person is found, have got education and experience. Depending of business and how hard it is to do your work, but this can be MUCH more than a salary. (For instance it can be very much if an expensive mashine will be not used or less effective used for a while. Or if you have a possible "bottle neck" position, which make OTHER people can't do their work if the process is stucked in your work position.)

..
I don't know why you want to quit. There are some LEGAL reasons to break a contract, but only IF the company has broken the contract allready or misstreated you VERY much. "Don't like the work"" or other company have offered you higher salary are NOT legal reasons

BUT NOTE! Even IF there is a legal reason for you to break the contract, the company can still sue you demanding very much money. Then it will depend of what the court decide. It's NOT only a question of if YOU find you have legal reason, it' a question of what you can PROVE and what the court DECIDE. Even if you can prove it, it isn't syre you will winn anyway. It can be of corect legal reason, the court can find your reason not big enough. Or the court can decide wrong by being bribed, friend with your opponent or just stupid Sometimes courts don't know or understand the law even if one part in the case tell them which law the claim is bases on and how to interprete it...