Contracts are an essential part of conducting business. In fact, every business, from a small sole proprietorship to a large fortune 500 retailer that operates in all 50 states, enters into contracts whenever a customer buys goods or services. Business contracts can cover nearly every aspect of business and can include employment contracts, nondisclosure agreements (NDAs), buy-sell agreements, and purchase orders, just to name a few.
When employees and employers enter into an employment relationship, California contract law will govern that relationship, regardless if the relationship is oral, written, express or implied. The employment relationship usually defines the terms and boundaries of the agreement between the employee and employer. Depending on the circumstances of your case, you or your employer may have certain rights to terminate the employment relationship. If your employer terminates the contract outside of those rights, your employer will have to face the consequences for breaching your employment contract.