Heckler & Quiat's Argument the Case Study

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Like many forms of bonuses and other awards, the severance package awarded to Jones was a recognition of his prior work. Where an otherwise gratuitous promise is supported by a moral obligation or past consideration, it is enforceable as a binding contract. The promise "to give you my car tomorrow because I like you so much" is an unenforceable gratuitous promise because there is no consideration for it. The promise "to give you my car tomorrow to thank you for all the help you gave me painting my house last month" is enforceable because there was past consideration for the promise (i.e. painting).

Law firms use contracts to create contracts; not letters. Jones' employment contract is not in letter form either. The letter was not a contract; it was an award letter and a directive from a supervisor to a subordinate. Simply translated, the letter was a promise by Heckler & Quiat to pay Jones a benefit worth $5,000 because he had earned that benefit with his hard work. It was no different from an award of company healthcare coverage if he did not already have it. Admittedly, Jones' work had fallen recently; the letter was also meant to remind Jones that he was expected to maintain the same quality of his previous work in the future that had earned him the benefit he was just awarded in return.

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Likely Outcome

The letter created a simple bilateral contractual obligation. Granting that consideration existed in the past and that it was enforceable, Jones breached his obligation by his absence from the office for extended periods of time for his job search. Jones' breach extinguished the contractual obligation that the letter was meant to create. Jones is not entitled to the….....

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