Dean, the president of Billing & Credit Company, promises to pay his employee Ew

Question

Dean, the president of Billing & Credit Company, promises to pay his employee Ewing, who is dangerously obese, $10 for every pound that he loses within the next two years. Ewing agrees, diets and exercises, loses 154 pounds, and asks Dean for $1,540. Dean refuses to pay, saying that he does not remember the promise, but that even if he did make it, there was no consideration, and Ewing’s improved health is a sufficient benefit for his effort and sacrifice. Ewing files a suit against Dean. In whose favor is the court likely to rule, and why?

Explanation / Answer

First, there was an initiation of an Offer by Dean which was accepted by Ewing. Offer could have lapsed in the following cases which in the above case did not occur:

An Offer lapses or ceases to remain in operation on the happening of any one of the following events, namely:-

a) When the offeror gives notice of revocation to the offeree expressly withdrawing the offer before the same is accepted and the acceptance is complete against the offeror.

b) By lapse of prescribed time limit.

c) When no time has been prescribed, after expiry of a reasonable time.

d) When the acceptor fails to fulfill a condition precedent.

e) By death or insanity of the proposer.

f) When a proposal once refused it is dead and cannot be revived by a subsequent acceptance.

However, there was no revocation of the offer on the part of Dean and Ewing accepted the same without any occurrence of any of the above event. Also, the communication of acceptance of offer was complete on the part of Ewing. Hence there was an offer, communication of an offer and acceptance and performance of the same therefore the parties were into a valid contract.

In terms of consideration, the Consideration can be PAST, PRESENT OR FUTURE. Consideration may be a positive act or a promise not to do an act.(abstinence). It is to be further noted that that an agreement to which the consent of the Promisor is freely given is not void merely because THE CONSIDERATION IS INADEQUATE. However, where there is a dispute as to the existence of free consent or not, the inadequacy of the consideration may be taken in to account by the court in determining the question whether the consent of the promisor was freely given or not i.e. whether it is not vitiated by coercion, undue influence, fraud etc.

In the above case, Dean is the promisor who did not make a promise to Ewing out of any force or compulsion and if such could be proved in the Court of law, then even in case of insufficient consideration, the Court could rule in the favor of Ewing.

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