New Jersey Employers and Employees Must Always Be Aware of the Language In Their Contracts

HNWBusiness Law, Contract Law, Employment Law

A large number of employers and employees throughout New Jersey sign employment contracts. Unfortunately, many employees often do not read the contracts before they sign them, seeing it as too complicated, a belief that they are non-negotiable, or simply because they are indifferent to the consequences of a bad contract. What many employees do not realize is that the language of the contract will bind both him/her and their employer once both parties have signed it. It is, therefore, crucial that one reads and understands their employment contract prior to signing it. An employee cannot claim as a defense to its enforcement on the fact that they did not read the contract even though they signed it. Your signature, unless fraudulently obtained, means you agreed to the terms of the contract as written and you will abide by it.

NJ contract law holds that a signed contract will bind both parties to the language included in the contract. This means that all employers and employees, once they sign the employment contract, must abide by the terms included in it or they will be considered in breach of the contract. If a dispute arises between an employer and employee, the first thing the courts will look to is the employment contract signed by the parties.

One recent employment case involved a doctor seeking to leave her medical practice and the partners she worked with in this practice in order to set up her own office. As is often the case, the parties disagreed about how much the departing doctor would be paid for her percentage of ownership in the practice and which remaining doctors would have a first right to purchase her ownership percentage. The courts refused to consider any other factor other than the written employment contract between the parties. The contract stated the price to be paid to the departing doctor and who would pay it in exchange for her ownership interest in the practice. This is a typical case and is an instruction on why it is imperative that you read and understand any contract you are signing.

To discuss your NJ contract and business law matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at  Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Contract Law Attorney

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