What can I do about a breach of contract?

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What can I do about a breach of contract?

I have been working for a small start-up for nearly 2 years. It was originally agreed that I would be given an equity percentage in the company but the company president has just incorporated the business with him holding 100% ownership.

Asked on April 2, 2013 under Business Law, Illinois

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You can sue the company for breach of contract.  Your damages (the amount of monetary compensation you are seeking in your lawsuit for breach of contract) would be the amount of equity you would have received pursuant to the contract.

Since the amount of equity you are to receive is a percentage, if this amount is not certain and may vary over time depending on the company's financial situation, an alternative to seeking damages in your lawsuit would be the equitable remedy of specific performance.  Specific performance means the court would issue a ruling ordering the company to comply with the terms of your contract by paying you the percentage of equity.


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