Organisation Contract Case Analysis

The case is about conflict between Dr Doe (Doe) and drugs companies. Dr Doe is a highly-brain powered scientist. He just appraised with Noble Prize in medicine for what he had done in the development of highly effective drug to prevent the common cold. Giant Drug Company is interested to hire Doe. Francis Stein (Stein), the president of this company has been negotiated with Doe to market a new drug. However, the competitor, MARK Drugs company also interested in hiring Doe, since this occurred, the case became debatable.

Case

As Stein has intention to hire Dr Doe, both of them have been engaged in a deep negotiation. Dr Doe was approached to become vice president of Giant Drug Company. After sometimes, Dr Doe decide that he will accept a position according to their negotiation. But, this needs to be underlined that the negotiation was merely discussed about marketing a new drug. There was no salary discussed in that negotiation.

On the 1st of May, Dr Doe sent a letter to Stein that he agreed to become Giant Drug Company’s vice president. The amount of salary as well as period also written in the letter he sent. He would work in Giant Drug Company for four years within $ 500,000 annual salary. This statement will be considered as an offer.

Due to the letter was delivered on the 1st May; Stein received it within two days. On the 3rd of May, after reading the letter, Stein directly contacted Dr Doe by phone. Stein stated that the written salary is too high. Stein offered a lower salary, which is $ 300,000 per annum. This is believed as a counter offer. Doe considered the counter offer as an unreasonable amount considering that he would in charge of research in marketing new drug. His intellectuality in developing highly eff...

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... research in pharmaceutical industry. If one of those drug companies hires Dr Doe and the project research success, there is a possibility that one company would take over market share and could increase their sales volume. This will end up creating a statement that this company is greater than that company. Therefore, specific performance seems more appropriate to be applied in this case than damages based on competition reason. Beside specific performance, injunction also fit to this case. The court could inquire MARK Drugs company to stop approaching Dr Doe to work with them.

Conclusion

If Stein and Dr Doe contract were exist, Stein was entitled for rebuttable. When this case is brought in to the court, the decision is likely about remedies (equitable remedies). Specific performances and injunction are the most appropriate remedies that can be applied.