Monty quit his $150,000 annual salary job with Computer Associates in Monterey,California,and moved with his family to Fairfield,Connecticut based upon an oral promise by Software Power to provide reimbursement of all moving expenses and at least three years employment at an annual salary of $250,000 per year.One month after moving,and before being reimbursed for moving,Monty's employment with Software Power is terminated due to a reduction in force caused by lower-than-expected product sales.Can Monty successfully sue Software Power?

A) No,since the promise was oral.
B) Yes,under promissory estoppel.
C) No,since a promise of employment is always subject to market conditions.
D) Yes,but only for the moving expenses that Monty can prove he incurred.

Question

Brittani Williams · Accepted Answer

Final Answer : B, Explanation :  Monty may have a claim for promissory estoppel, which is a legal doctrine that may be used when a promise is not supported by consideration. Promissory estoppel requires that (1) a promise was made, (2) the promisee relied on the promise, (3) the reliance was reasonable and foreseeable, and (4) injustice can be avoided only by enforcing the promise. The promise by Software Power to provide reimbursement of moving expenses and three years of employment at a certain salary meets all of these criteria. Therefore, Monty may be able to sue under promissory estoppel. The fact that the promise was oral does not necessarily prevent Monty from pursuing a claim. However, Monty may not be able to recover damages for lost wages, as the promise was based on future contingencies and market conditions. But he may have a claim for the moving expenses that he can prove he incurred.

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