International Business Machines Corp. (IBM) hired Niels Jensen as a software sales representative. According to IBM’s “Sales Incentive Plan” (SIP), “the more you sell, the more earnings for you.” But “the SIP program does not constitute a promise by IBM. IBM reserves the right to modify the program at any time.” Jensen closed a deal worth more than $24 million to IBM. When IBM paid him less than $500,000 as a commission, Jensen filed a suit. He argued that the SIP was a unilateral offer that became a binding contract when he closed the sale. Would it be fair to rule in Jensen’s favor? Discuss.
[Jensen v. International Business Machines Corp., 454 F.3d 382 (4th Cir. 2006)]