Roger:
Sorry for the delay in getting back to you but have not been able to log on to SI for two days.
As for Avon, even though contract law is not my strong suit, I will give you my read on it. It's the old maxim, offer, acceptance, and consideration and you have a contract. Avon makes an offer to which a number of people responded by signing up new sales people. Acceptance of an offer does not have to be in writing, it can be by action that shows an intent to accept. As you know, sharp lawyers will put a time limit on a contract and let the parties draft renewals. In this instance, it sounds like the company unilaterally terminated the contract. You can do that if you feel like paying damages. Therefore, my gut reaction is that on those facts, they could well have to pay off down the line. As an aside, if my memory serves me correct, Bill Wexler picked Avon as a short a while back.
One last thought, as you know, some corporations deliberately breach a bad contract hoping that they can settle a lawsuit cheaper than they can honor a contract. I am not saying that this is the case here, but I have seen that type of conduct in the real world.
Best regards,
Scott
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