First-Year Law Students' Examination (FYLSX)

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A software company hires a programmer for a one-year contract at a salary of $120,000 ($10,000 per month). After two months, the company wrongfully terminates the programmer. The following week, the programmer receives an offer for a comparable programming job in the same city for the same salary but declines it to take a year off. The programmer then sues the former employer for breach of contract. What is the likely amount of damages the programmer can recover?

The full remaining contract value of $100,000. Nothing, because the programmer rejected a comparable job offer. Damages for a reasonable period of job searching, likely one or two weeks' salary. Six months' salary, as a standard severance.

Correct Answer:

Damages for a reasonable period of job searching, likely one or two weeks' salary.

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