Business Law 4th Edition by David Twomey,Marianne Jennings

Exercise 7

Kelsoe worked for International Wood Products, Inc., for a number of years. One day Hernandez, a director and major stockholder of the company, promised Kelsoe that the corporation would give her 5 percent of the company's stock. This promise was never kept, and Kelsoe sued International for breach of contract. Had the company broken its contract? [Kelsoe v International Wood Products, Inc., 588 So2d 877 (Ala)]