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Posted on March 8th, 2013, by

The case of Vanegas vs. American Energy Services is one of the cases, which reveals the enforceability of the promise, even though originally the promise could be illusory. In this respect, it is important to dwell upon the details of the case to understand how the illusory promise can transform into the enforceable one imposing contract obligations on the parties involved in the deal. In fact, the case Vanegas vs. American Energy Services is very important because the situation that occurred to American Energy Services and its employees occurs frequently in the contemporary business environment, when mergers and acquisitions have become a norm.

In fact, the case Vanegas vs. American Energy Services was the result of the conflict between American Energy Services (AES) and its employees after AES was sold. The company was unwilling to pay its former employees because the company held the premise that employees were recruited on the ground of the at-will-employment. Therefore, the promise to pay was not enforceable, according to the company. Moreover, the company stressed that the promise to pay was illusory.

However, employees remained with the company and performed respectively to the agreement. Therefore, employees insisted that the promise to pay was enforceable because they carried on working in the company even, when it was sold. In such a situation, the court took the side of employees because their actions made the promise enforceable, whereas the company agreed to the contract as AES did not refuse from the work of employees.

Thus, the case of Vanegas vs. American Energy Services shows the transformation of an illusory promise into an enforceable contract.

 

References
Epstein, D.G. (2006). Making and Doing Deals: Contracts in Context. New York: Random House.
Hyde, A. (2003). Working in Silicon Valley: Economic and Legal Analysis of a High-Velocity Labor Market. Armonk, NY: M.E. Sharpe
Vanegas vs. American Energy Services.

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