Cook V Coldwell Banker
Cook V Coldwell Banker
@court of appeal
Status: Defendant appealing from judgement of jury verdict awarding plaintiff, a former
salesperson, of damages for breach of bonus agreement
FACTS
Defendant said salesperson didn’t make accept the bonus offer before it was revoked
Plaintiff listed and sold real estate as independent contractor
o Worked as salesperson per verbal agreement
Defendant (through Laiben, a co-owner), verbally announced bonus program In march
o Bonuses over 500 were to be paid at the end of the year
o In September, he verbally announced bonuses would actually be paid next march
Plaintiff asked if employment is necessary for bonus. He said yes.
Plaintiff left job in January.
o In march she demanded her bonus be paid
At trial, Leiben defined that at the march meeting, he said bonuses would be paid at the
end of the year and said he told agents bonus would be paid next march
Defendant is arguing she didn’t tender consideration to support defendents offer of bonus
In other words, she didn’t fulfill her side of the bargain for the other side to owe her
anything
RULE
Unilateral contrat is based on wish, will, or pleasure of one of the parties
o A promisor does not receive a promise as a consideration for his or her promise
in a unilateral contract
Klamen
o A unilateral contract lacks consideration for want of mutuality, but when the
promise performs, consideration is supplied, and the contract is enforceable to
the extent performed
Nilsson
o A promise to pay a bonus in return for an at will employee’s continued
emplyement is an offer for a unilater contract which becomes enforceable when
accepted by the employees performance
2nd restatement- offer may not be revoked where the offeree has accepted the offer by
substaintial performance
Fact application
Sufficient evidence that bonus offer induced plaintiff to remain with defendant through
end of year
Theres evidence that before the offer was modified in September 1991, platinf had
remained with defendant and earned over X in commissions, making her eligible for
offered bonus. Constitutes sufficient evidence of substaintial performance
Issue
Was there contract
Did she accept offer