A Hole in His Parachute Essay Example | Topics and Well Written Essays - 500 words - 1

A Hole in His Parachute - Essay Example night still has an opportunity to claim his salary for the remaining two year because upon signing the agreement, he obtained a right of interest as a partner in the Knight-Ridder Corporation. It is this right that will therefore be used to claim for his salary in the next two years. In this case, his right is much protected by a business law which also consists of a number of laws such as commercial law, partnership law and Federal Corporation law (Mallor, 2012).These laws therefore guarantee him of the high chances of getting his money. According to Mallor (2012), an agreement is a legal and binding document that reveals the obligations of two or more parties involved in a business. Both Knight and Murdoch made an agreement where each was expected to have his own obligations. Knight was expected to offer advises to the Knight-ridder Corporation about the newspaper for five years. Murdoch on the other hand, was expected to pay Knight an annual salary of 2.5 million dollars for his services. However, breaching of agreement is the failure to accomplish duties and terms agreed upon by the two parties. Murdoch failed to fulfill his obligation through dissolution of Knight-Ridder Corporation before a period of five years therefore terminating Knight’s salary for two years. The legal and binding document established by the two partners gave them legal rights in the Corporation. Murdoch obtained the right of ownership as an employer, and as the largest shareholder of the Corporation while Knight acquired the right of interest as a partner. Since Murdoch failed to perform his duty as revealed in the legal and binding document, he is viewed as violating Knight’s right as a partner. Knight can therefore take steps to reclaim the money owed to him by suing Murdoch through a court of law. In the court, a judge would solve the case through the guidance obtained from a business law which oversees the various types of business transactions such as mergers and acquisitions,