CONTRACTS

 

In American Samoa, if the parties to an employment contract have neither fixed a definite term of employment nor created any contractual obstacle to the employer’s discretionary right to discharge the employee, then the contract is for employment at will, and the employer may discharge the employee without incurring liability.  The parties’ understanding with respect to employment duration is the key to determining whether the contract contains a just cause termination provision.  Faumuina v. A.S.G. Emp. Ret. Fund, 1 A.S.R.3d 45 (1997).

 

The court will consider the intent of the parties, business custom and usage, the nature of the employment, the situation of the parties, and the circumstances of the case to determine the understanding of the parties with respect to employment duration. Faumuina v. A.S.G. Emp. Ret. Fund, 1 A.S.R.3d 45 (1997).

 

Courts must examine the nature of the interest at stake to determine whether the party has merely a unilateral expectation of the interest or has a constitutionally protected claim of entitlement to the interest in deciding a party’s due process rights.  Faumuina v. A.S.G. Emp. Ret. Fund, 1 A.S.R.3d 45 (1997).

 

Enforceable claims to an entitlement derive from a statute, legal rule, or through contractual arrangement. Faumuina v. A.S.G. Emp. Ret. Fund, 1 A.S.R.3d 45 (1997).

 

Where a discharged employee presents sufficient facts which, if proven at trial, could persuade a reasonable factfinder to find that he had a just cause termination clause in his employment contract, that his employer wrongfully terminated his employment without just cause, and that the employment was terminated in violation of the requirements of procedural and substantive due process the employer’s motion for summary judgment will be denied by the court.  Faumuina v. A.S.G. Emp. Ret. Fund, 1 A.S.R.3d 45 (1997).

 

Where parties had entered into an installment contract, the time of breach was to be measured at date last missed payment, not before.  BHP Petroleum South Pacific, Inc. v. Daitoh Trading Co. 1 A.S.R.3d 60 (1997).

 

Where documentary evidence and prevailing business custom supported defendant’s interpretation of contract, decision in its favor proper.   Pioneer Trucking, Ltd. v. Fletcher Construction Co., Ltd., 1 A.S.R.3d  72 (1997).

 

Circumstances indicated that consideration for agreement was really use of seller’s vehicle as taxi, and not vehicle, where vehicle was operated by purchaser as taxi for eighteen months without transferring title. Taliga v. Siaumau, 1 A.S.R.3d 73 (1997).

 

Where agreement was meant to violate or evade the Territory’s business licensing laws, it is contrary to public policy, illegal and unenforceable. Taliga v. Siaumau, 1 A.S.R.3d 73 (1997).

 

Where services are rendered pursuant to an illegal agreement, recovery is unavailable under both breach of contract and quantum meruit theories. Taliga v. Siaumau, 1 A.S.R.3d 73 (1997).

 

Full performance of a duty under a contract discharges the duty.  Ioane v. Aiga Tautai O Samoa, 1 A.S.R.3d 96 (1997).

 

Where plaintiff had agreed to do emergency repairs on defendant’s boat and defendant promised that payment would be discussed after completion of work, but said topic was never discussed between parties, plaintiff entitled to quantum meruit compensation for services rendered. Ioane v. Aiga Tautai O Samoa, 1 A.S.R.3d 96 (1997).

 

Plaintiff’s claim of for payment at his customary rate was neither untoward nor unreasonable and was proper as quantum meruit compensation.  Ioane v. Aiga Tautai O Samoa, 1 A.S.R.3d 96 (1997).

 

Parties to a contract for the sale of land must mutually assent to their agreement, tested by an objective or external standard.   Onofia v. Pitoitua, 1 A.S.R.3d 159 (1997).

 

In American Samoa, a contract for the sale of land must be in writing, supported by some written evidence signed by the party to be bound or his authorized agent.  Onofia v. Pitoitua, 1 A.S.R.3d 159 (1997).

 

A claimant cannot successfully assert part performance when he fails to keep his own bargain.  Onofia v. Pitoitua, 1 A.S.R.3d 159 (1997).