. Based on your knowledge of contracts from your reading this week, discuss the
ID: 429943 • Letter: #
Question
. Based on your knowledge of contracts from your reading this week, discuss the following case. Be sure to support your view with the facts and the law.
Maurice is an accountant who works for the firm of Addum, Upp, & Paymee. Maurice was approached by Shirley Eugest, who represents one of Addum’s competitors, BeanCounters, Inc. Maurice was offered a substantial raise to leave his company and work for BeanCounters. When Maurice's boss heard this he called him in and said, “If you stay with us, I promise that next year you will receive a promotion with a 50% raise, and a 5-year contract.” Maurice turned down the offer from BeanCounters and stayed with Addum. Nine months later Maurice was dismissed due to corporate downsizing. Can Maurice legally enforce his boss’s promise? What theory or theories would Maurice use? Discuss fully.
Explanation / Answer
Yes, Maurice can take the help of law to enforce his boss's promise. Oral promises, agreements and contracts are valid and legally binding. The promise was reasonable, equitable and made in good faith.
The only problem Maurice can face is the lack of evidence. If Maurice's boss lies in court, then there is no way Maurice can prove that the promise was made. This is the biggest risk for Maurice in this case, if presented in court.
Otherwise, the theories that Maurice can use are: (1) mutual consent and agreement - both Maurice and his boss were cognizant about what was being promised. (2) mutual consideration - in exchange of the promise, Maurice did not quit his job at Addum, Upp, & Paymee.
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