Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his moving expenses up to $10,000 if Robert would quit his job and come to work for him at his manufacturing plant.Robert agreed to do so,but requested a written contract.Alfred assured him that the company attorney would prepare such a contract as soon as possible,but Alfred needed Robert to start at once.Accordingly,Robert sold his house,moved his family,and commenced to work for Alfred.He was fired without cause two months later.No written contract was ever executed.Can Robert enforce Alfred's oral promise?
A) No. This was a contract for longer than one year. Without a writing it violates the statute of frauds and is not enforceable.
B) Maybe. Robert should go to court under the theory of promissory estoppel. Alfred made an oral promise that Robert relied upon, and the way to avoid injustice is to enforce the promise.
C) Yes. This is a personal satisfaction contract, and Alfred gave no reason for dissatisfaction. Robert can recoup the loss he took on the sale of his house.
D) Yes. This is a partial performance of the sale of goods. Robert can recoup the loss he took on the sale of his house.

Question

Quizplus · Accepted Answer

Robert can argue that he relied on Alfred's oral promise and quit his job and moved his family based on this promise. This falls under the theory of promissory estoppel, which prevents Alfred from going back on his promise and causing Robert harm. The lack of a written contract does not necessarily prevent Robert from enforcing the promise in court.

Alfred Orally Promised to Pay Robert a Salary of $30,000