Stephen Muka owned U.S. Robotics. He hired his brother Chris to work in the comp

Question

Stephen Muka owned U.S. Robotics. He hired his brother Chris to work in the company. His letter promised Chris $1 million worth of Robotics stock at the end of one year, “provided you work reasonably hard & smart at things in the next year.” (We should all have such brothers.) Chris arrived at Robotics and worked the full year, but toward the end of the year, Stephen died. His estate refused to give Chris the stock, claiming their agreement was a personal satisfaction contract and only Stephen could decide whether Chris had earned the reward. Comment. write your answer in IRAC (Issue, Rule, Application of the rule, and, Conclusion) format.

Explanation / Answer

Issue: Will Chris be able to get the $1 million worth of Robotics stock at the end of one year after Stephan’s death?

Rule: Personal satisfaction contracts require personal satisfaction of the employer to enforce the contract but objective assessment will be used if assessing work does not involve personal judgment or the contract explicitly failed to demand personal satisfaction.

Application: The letter from Stephen promised Chris $1 million worth of Robotics stock at the end of one year, provided he work reasonably hard & smart at things in the next year. According to the written contract the reward would be given to Chris after assessing the performance but as Stephan is dead objective assessment can be used in this case to assess the performance apart from personal satisfaction. The promise’s judgment of the work should be reasonable under objective reasoning and if Chris has performed well fulfilling the conditions in the contract, the estate should be satisfied with his performance and is bound to fulfill the contract requirements and reward Chris.

Conclusion: If Chris’ performance was satisfactory and shows the proof for hard work and smart work in his performance by yielding positive results, the estate should reward Chris as per the contract.

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