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You are here: Home1 / Contract Law2 / AN AGREEMENT TO PAY COMMISSIONS CAN BE PERFORMED IN ONE YEAR AND THEREFORE...
Contract Law, Employment Law

AN AGREEMENT TO PAY COMMISSIONS CAN BE PERFORMED IN ONE YEAR AND THEREFORE IS NOT SUBJECT TO THE STATUTE OF FRAUDS 3RD DEPT.

The Third Department noted that an agreement to pay commissions is an agreement that can be performed in one year, so an oral agreement to pay commissions is not subject to the statute of frauds:

“An agreement to pay an at-will employee commissions earned during the period of his or her employment is capable of performance within one year and does not violate the [s]tatute of [f]rauds” … . Here, the gravamen of plaintiff’s complaint is not about renewal commissions that accrued after his resignation from WorldClaim … . Rather, plaintiff seeks the payment of commissions that he claims were earned while he was still employed by WorldClaim … . Indeed, the complaint alleged that plaintiff, “[d]uring the period from approximately April 2011 to January 2012, . . . earned $104,525 in commissions from sales, [and] $25,000 in monthly bonuses.” Given that plaintiff was still employed by WorldClaim during this alleged time period, the statute of frauds does not bar plaintiff’s claim for unpaid commissions … . Kieper v The Fusco Group Partners Inc., 2017 NY Slip Op 05782, 3rd Dept 7-20-17

EMPLOYMENT LAW (STATUTE OF FRAUDS, COMMISSIONS, AN AGREEMENT TO PAY COMMISSIONS CAN BE PERFORMED IN ONE YEAR AND THEREFORE IS NOT SUBJECT TO THE STATUTE OF FRAUDS 3RD DEPT)/CONTRACT LAW (EMPLOYMENT LAW, COMMISSIONS, STATUTE OF FRAUDS,  AN AGREEMENT TO PAY COMMISSIONS CAN BE PERFORMED IN ONE YEAR AND THEREFORE IS NOT SUBJECT TO THE STATUTE OF FRAUDS 3RD DEPT)/STATUTE OF FRAUDS (EMPLOYMENT LAW, COMMISSIONS, AN AGREEMENT TO PAY COMMISSIONS CAN BE PERFORMED IN ONE YEAR AND THEREFORE IS NOT SUBJECT TO THE STATUTE OF FRAUDS 3RD DEPT)

July 20, 2017
Tags: Third Department
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