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Business Law Case Study 1

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BusLaw

Brinkley V. Casey and Big-City Newspaper

FACTS Brinkley, a copy editor of the Big-City Newspaper finds a serious error in the headline banner for tomorrows newspaper. Brinkley reports to Casey, the chief editor about the error and its correction. Casey offers Brinkley a $500 bonus payable on her next check. Casey changes his mind about the bonus and tells Brinkley. Brinkley claims she earned the money, that Casey promised.

ISSUE Was there an agreement between the two parties supported by consideration?

HOLDING No. Casey offered the bonus after the services had been performed. To be a valid agreement, the services would need to be done after the contract was agreed upon.

REASONING There was no open-ended contract stating that if any editor found and corrected errors that could save the newspaper legal expenses that the chief editor could offer a bonus. Casey is under no obligation to offer a bonus to Brinkley even if he stated that he would after-the-fact. Brinkley’s error catching and its correction is considered as past performance and has no legal standing for a breach of contract lawsuit.

My Opinion Brinkley has no case for a lawsuit. Casey, on the other hand should pay the bonus for moral reasons and employee morale. Casey could change the newspaper’s policy regarding an editor's performance.

Court The court would not support Brinkley in the lawsuit due to past consideration.

Brinkley’s Attorney If I was the attorney I would most likely tell her that it was a waste of money to file a lawsuit. In court, though I would file for breach of contract with consideration.

Prevent Lawsuit Casey could have paid the $500 bonus and changed the newspaper’s policy. He could have also told Brinkley that he would make a notation in her employment file for her annual review and discuss a bonus with her then. Brinkley

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