University:
University of Arkansas at Little Rock
Course:
LAW 6310 | Contracts I
Academic year:

2023
Views:

63

Pages:

1
Author:

Ceafdresstzox

Plowman v. Indian Refining Co. FACTS: Indian Refining Co. was forced to lay off some of their employees due to a financial downturn. The company provided the former employees half of their salaries, payable by semi-monthly checks which the former employees were obligated to retrieve from the office. Payments stopped, and employees filed suit, claiming that the employer agreed to continue the payments for life. PROCEDURAL POSTURE: The former employees sued, and their claim was dismissed by the District Court. ISSUE: Was consideration present? RULE: Past consideration and moral consideration are not valid. HOLDING: No. The services performed by the employees in the past does not constitute sufficient consideration to make a contract enforceable. REASONING/ANALYSIS: Though the employees were valuable to the company and felt as though they earned the payments after being laid off after years of service, their work for the company over the years was obviously completed in the past, and past consideration is not valid to form an enforceable contract. MY OPINION: Though the employees might have deserved the payments they were informally promised, the lack of official authorization of the agreement as well as the lack of consideration make it impossible.

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