Issue

Enforceability—employment agreement—ownership interest provision—void for indefiniteness

Summary

In an action to enforce an employment agreement provision, under which plaintiff sought to exercise an option to purchase ten percent of the company after five years of employment (with the remaining ninety percent to be owner-financed over a period of years after that), the decision of the North Carolina Business Court granting summary judgment to defendants–based on its determination that the agreement between the parties was illusory–was modified and affirmed. The agreement could not be enforced due to it being void for indefiniteness where the ownership provision was not severable from its sub-division parts and where the agreement lacked material terms regarding the parties' respective rights and obligations, including those necessary for enforcement and, more particularly, a price or formula upon which a price could be calculated.

Summary from the North Carolina Reports digest (official subject index). Read the opinion →