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32. In a suit against the insurance company for breach of contract, the manager will probably
A manager, aged 60, who had no plans for early retirement, had worked for an insurance company for 20 years as a managerial employee-at-will when he had a conversation with the company's president about the manager's post-retirement goal of extensive travel around the United States. A month later, the president handed the manager a written, signed resolution of the company's Board of Directors stating that when and if the manager should decide to retire, at his option, the company, in recognition of his past service, would pay him a $2,000-per-month lifetime pension. (The company had no regularized retirement plan for at-will employees.) Shortly thereafter, the manager retired and immediately bought a $30,000 recreational vehicle for his planned travels. After receiving the promised $2,000 monthly pension from the insurance company for six months, the manager, now unemployable elsewhere, received a letter from the insurance company, advising him that the pension would cease immediately because of recessionary budget constraints affecting in varying degrees all managerial salaries and retirement pensions.
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A is incorrect. The company's promise to pay a pension was not conditioned upon the manager's retirement, and therefore it was not part of a bargained-for exchange.
C is incorrect. Gift promises may be enforceable on grounds of promissory estoppel.
D is incorrect. The manager's status as an at-will employee does not affect his ability to enforce the pension promise on a detrimental reliance theory.