Determine is tcp correct and explain

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Reference no: EM132025337

Technical Consumer Products, Inc. (TCP) makes and distributes energy-efficient lighting products. Emily Bahr was TCP's district sales manager in Minnesota, North Dakota, and South Dakota when the company announced the details of a bonus plan.

A district sales manager who achieved 100 percent year-over-year sales growth and a 42 percent gross margin would earn 200 percent of his or her base salary as a bonus. TCP retained absolute discretion to modify the plan.

Bahr's base salary was $42,500. Her final sales results for the year showed 113 percent year-over-year sales growth and a 42 percent gross margin.

She anticipated a bonus of $85,945, but TCP could not afford to pay the bonuses as planned, and Bahr received only $34,229.

In response to Bahr's claim for breach of contract, TCP argued that the bonus plan was too indefinite to be an offer. Is TCP correct? Explain.

Reference no: EM132025337

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