David Zigler was an employee of Featherstone Foods. Joel Schonfeld was Ziglers employer. The two exchanged e-mails
Question:
David Zigler was an employee of Featherstone Foods. Joel Schonfeld was Zigler’s employer.
The two exchanged e-mails in which Zigler sought assurance that he would have a right of first refusal to purchase Featherstone. Zigler contended that Schonfeld granted Zigler this right of first refusal in exchange for Zigler’s
“continued efforts as an employee of [Featherstone] related to the acquisition of a Featherstone competitor.” Schonfeld and Zigler eventually executed a one-sentence agreement that stated that “[Schonfeld] will give [Zigler] right of first refusal to purchase Featherstone Foods, Sesame Distribution, Caraway, and any related entities.” Later, Schonfeld decided to sell his business to a private equity firm. Zigler sued for violating the right of first refusal to buy the business.
Schonfeld and other defendants moved to dismiss the complaint in its entirety. The defendants argued that the right of first refusal agreement lacked consideration and was therefore unenforceable. Should the court dismiss the complaint?
Step by Step Answer:
Business Law Text And Exercises
ISBN: 9780357717417
10th Edition
Authors: Roger LeRoy Miller, William E. Hollowell