Reference no: EM131698632

Discussion

Respond to the following:

• Thinking back on the last few months, consider a time when you encountered a friend or business associate who promised or agreed to do something but did not follow through. For example, did someone agree to sell you something but at the last minute changed the price? Or did someone agree to perform a service, but then later said he or she was too busy?

Relate the facts of your example. Then, based on the materials in the reading and lecture, explain why the facts you presented did or did not meet the legal requirements for a contract. Be sure to support your response.

Contracts have several classifications including:

• Bilateral v. Unilateral;
• Express v. Implied, either implied-in-fact or implied-in-law also known as quasi contracts;
• Formal v. Informal;
• Executed v. Executory;
• Void v. Voidable; and
• Valid v. Unenforceable.

In your discussions this week, in addition to identifying the elements of a valid contract, please make sure that you indicate which classifications that you think apply to your examples and why.

Also, consider the following situtation:

XYZ company has promised to contribute a certain percentage of its profits to its employees' pension plans. Some employees have been at the company for close to fifteen or twenty years and have turned downed offers to work for other companies that were paying higher salaries because of the promises of XYZ to contribute to the employees' retirement funds. Recently, XYZ decided to revamp its benefits packages and will no longer be contributing profits to employees' pension plans.

In your opinion, would XYZ's decision to stop profit contributions constitute a breach of contract? Why or why not? What classifications would apply, and what options are available to the affected employees?