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(Solution document) This is a question relating contracts. Carol is a school teach at Happy Child School.


This is a question relating contracts.


Carol is a school teach at Happy Child School. At the end of the school year she received a letter from the principle stating that she has been chosen the "teacher of the year", and would be receiving a $5,000 bonus for her outstanding work. Carol immediately phoned the principal and thanked him for the bonus, which she had not expected since she did not even know that such an award existed. Two weeks later the principle sent another letter to Carol letting her know that due to budget problems she would not getting the bonus. If Carol should go to court to collect the bonus, a court would probably rule:


A. For Carol, since this a valid bilateral contract

B. For Carol, since this is a valid unilateral contract

C. For the school, under the past consideration doctrine

D. For the school, under the pre-existing duty rule

E. For the school, under the parole evidence rule


I know the answer is C but I am confused as to why.

 







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