Jon works for a major bank. The revised employee handbook that he received 5 years ago says that all employees with 25 years of service will receive a retirement party. He is about to hit 25 years of service and has announced his retirement. His manager tells him that the company, on the basis of his years of service, will throw him a party and present him with a gold watch. Jon retires on his 25th anniversary, and his manager announces that the company will not throw the party or give him the watch.

Question

Quizplus · Accepted Answer

It may be argued that Jon performed a legal detriment after receiving the party promise in the handbook; however, the watch is based on past performance and is not an enforceable promise as its basis is past consideration.

Jon Works for a Major Bank