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Official Blog of the AALS Section on Contracts

Cases—Indefiniteness—Varney v. Ditmars Redux

A former employee who sued to recover a promised “fair” bonus based on the employer’s “profits” could not recover because the promise was too indefinite, according to the Georgia Court of Appeals.  From Judge Ruffin’s opinion:

The record shows that Strother never told Mathews that he would receive a particular amount of additional pay to compensate him for his responsibilities over the parts department. Instead, Strother merely indicated that Mathews’ annual bonus would be “fair” and based somehow on the dealership’s profits. There also is no evidence that Strother agreed to use the same formula to calculate the bonus each year, and Strother testified that he awarded year-end bonuses at his discretion. Comptroller Mims similarly testified that Strother decided whether an employee would receive a bonus and the amount of that bonus.

Given this evidence, we agree with the trial court that Strother’s promise of future compensation for Mathews’ increased responsibilities over the parts department is unenforceable. According to Mathews, Strother promised to pay him a “fair” bonus based on dealership profits. Such promise does not permit an exact determination of compensation.

Mathews v. Marietta Toyota, Inc., 2004 Ga. App. LEXIS 1422 (Ga. Ct. App. 4th Dist. Nov. 4, 2004)

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