Hartman, who worked for Aratize Inc. for 25 years, decides to retire. Upon hearing the news of his retirement, the president of Aratize announces a bonus of $250,000 to Hartman for his exceptional services toward Aratize thus far. But upon retiring, Hartman isn't paid the bonus. Hartman decides to sue the president and Aratize to recover the promised bonus. Which of the following is true in this case?

Question

Quizplus · Accepted Answer

The promise for the bonus is based on services that Hartman has already performed, which constitutes past consideration. In contract law, past consideration (something given or some act done in the past, which cannot be consideration for a later promise) is generally not considered valid consideration for a new promise, making the promise unenforceable.

Hartman, Who Worked for Aratize Inc