Plowman v. Indian Refining Co.

Plowman v. Indian Refining Co. - Contracts 9/10...

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Contracts 9/10 Consideration Plowman v. Indian Refining Co., U.S. District Court E. Dist. Illinois, 1937 Facts : 18 plaintiffs claimed that defendant promised them ½ current salaries for the rest of their lives when they were laid off from their jobs. Payments ceased after just less than a year. After their meetings, a letter was sent from the company that says nothing of lifetime payments. Procedure : district court. Defendants say payments were gratuitous, continuing at the pleasure and will of defendant; there was no consideration for the promise to make the payments. Plaintiffs say picking up the check was consideration and past service was consideration and there was moral consideration. Issue : whether there was any consideration for a contract to pay an employee’s salary for life; (whether the long and faithful service of the employees constitutes consideration); (whether traveling to the office to pick up checks was consideration) Holding : contracts were not valid; long and faithful service is not consideration –
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This note was uploaded on 04/10/2011 for the course LAW 501 taught by Professor Roy during the Fall '08 term at Ole Miss.

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Plowman v. Indian Refining Co. - Contracts 9/10...

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