• This problem is based on anticipatory breach of contract.
• In this case it is evident that there was a legally binding agreement between Mike and the employer. The employers letter to Mike intimating that his services would not be required amounts to a breach of contract in anticipation for which Mike has an actionable claim.
• My advise to Mike is to sue the employer in damages for anticipatory breach as he has clearly intimated his intention not to honour his obligation on the due date.
• My advise is based on the decision in Frost V. Knight.
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