Chapter 12, Problem 2TS

Summary Introduction

Case summary:

In 1969, at the age of seventeen, Person A began working for company P. She had reached the rank of a bookkeeper, chief of office and right-hand treasurer by 2007. The board of chiefs, in recognition of their capacity, dedication, and long service time, agreed to increase the month-to-month salary of Individual A to $4,000 and make a retirement plan. The agreement allowed to grant person A the privilege of withdrawing from the complex contract if she wished to accept a retirement payment of $2,000 per month for life, even though the board expressed the faith that Person A would continue to represent the organization for a long time. Person A, as it may be, agreed to resign two a long time later. Company F has paid her retirement pay to Person A until 2016. The business suspended instalments from that point on.

To discuss: The arguments that he company’s promise is not enforceable.