American Machinist

Terminated rep wins commissions. (Law & Liability).

THERMAL ENGINEERING CORP. manufactures curing ovens, paint booths, and control panels that operate manufacturing equipment. On Oct. 5, 1987, Thermal hired Richard E. Lee as its sales representative in the southeastern U.S. The agreement, which was to run from year to year, provided that Lee was to be paid on a commission basis for any orders accepted by Thermal. Either party could terminate the contract upon six months written notice; however, the agreement would remain in force for six months after notice of termination.

On March 29, 1995, Thermal sent Lee a notice of termination. Lee reminded Thermal of the six-month notice provision in their contract and requested an accounting of any commission that might be due during the notice period. …

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