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On May 1, 2021, PETE entered into a written Contract with XYZ Bank to work as an accountant at an agreed upon salary. PETE's performance
On May 1, 2021, PETE entered into a written Contract with XYZ Bank to work as an accountant at an agreed upon salary. PETE's performance for XYZ was outstanding. Because of PETE's performance and not wanting PETE to quit or leave his employment with XYZ, on July 21, 2021, XYZ asked PETE to sign another written contract which simply stated: "that if PETE decided to leave his job with XYZ, PETE would not take another job with any direct competitor of XYZ for three (3) years. It did not include any increase in salary. PETE read the contract, agreed to the terms, and signed the contract. In September, 2021, based again on PETE's job performance and as part of his contract with XYZ, PETE was assigned to promote a new product for XYZ. As part of this promotion, XYZ gave PETE another written contract wherein it was stated as follows: "PETE would receive a bonus payment of 10% of any sales that he made of the new product, if management agreed to do so." PETE read this contract, agreed to its terms and signed the contract Again, PETE exceed all expectations with the sale of the new product and requested payment of the 10% bonus that he had earned in accordance with the contract PETE had signed with XYZ. XYZ refused to pay the 10% bonus. As a result of XYZ's refusal to pay the bonus, PETE quit his job with XYZ and immediately went to work for a direct competitor of XYZ selling the same product as he did for XYZ. XYZ files a lawsuit against PETE to force him to quit his new job, stating that PETE had breached his contract with XYZ by accepting another job for a direct competitor of XYZ in violation of his contract that PETE had signed with XYZ on July 21, 2021. (A) What Legal Defenses, if any, could PETE use to defend his right to take another job and defeat XYZ's claim that PETE breached his Contract? Set forth the exact LAW(S) PETE could use in his Defense to defeat XYZ's claim. (B) What would be XYZ's legal Response, if any, to PETE's Defense be? PETE also brings a lawsuit against XYZ for the loss of his 10% bonus payments that XYZ had promised him pursuant to the written contract with XYZ in September, 2021, for the sale of the new products. XYZ claims they owe PETE nothing because he quit his job with XYZ. (A) What Legal Defense could PETE use to force XYZ to pay him the bonus money. Set forth the exact LAW(S) PETE could use in his Defense and, to defeat any Defense XYZ may allege. Explain in detail. In XYZ's Response, set forth XYZ's Legal Defense to each of PETE's Defense to avoid having to pay PETE any bonus money. Set forth the exact LAW that XYZ could use to defeat PETE' Defense and avoid having to pay PETE his bonus. Would it be successful? Why or why not
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