Soupy Sales makes a big sale for XYZ Corporation. Afterward the company promises Soupy a $5,000 year-end bonus. The company's promise is unenforceable.

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Soupy Sales makes a big sale for XYZ Corporation.  Afterward the company promises Soupy a $5,000 year-end bonus. The company's promise is unenforceable.

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The question concerns whether the company’s promise of a $5,000 year-end bonus to Soupy Sales is enforceable after Soupy has already completed a big sale for XYZ Corporation.
Option 1: True. The claim that the promise is unenforceable rests on the idea that there is a lack of valid consideration. Since Soupy already performed the sale before the promise was made, the promise to pay a bonus would be a promise for an act that has already been performed, which traditionally does not count as new consideration. Without new consideration or a separate bargained-for exchange, the contract to pay the bonus is not enforceable in many jurisdictions. Additionally, unless there was a prior agreement or reliance that would create promissory estoppel, the promise lacks the essential element required to enforce a contract arising after performance.
Option 2: False. This would be incorrect because, in typical contract law, a promise made after the performance of the requested act is generally not enforceable due to the absence of fresh consideration. A post-performance promise to pay for past actions does not create a new contract unless there is something else changing the legal relationship—such as a new consideration, a modification supported by mutual assent, or a situation invoking promissory estoppel. If none of these elements are present, the promise remains unenforceable. The statement would only be true under a different set of facts (for example, if Soupy’s sales effort induced XYZ to rely to their detriment and promissory estoppel applied, or if there was a formal contract modification with new consideration).

BUSFIN 3500 AU2025 (2111) Final Exam Au_1_25- Requires Respondus LockDown Browser

Soupy Sales makes a big sale for XYZ Corporation. Afterward the company promises Soupy a $5,000 year-end bonus. The company's promise is unenforceable.

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