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In 1974, as soon as she graduated from high school, Jane Callen started working for AJM Industries. Her first position was in the mailroom, but

In 1974, as soon as she graduated from high school, Jane Callen started working for AJM Industries. Her first position was in the mailroom, but over the years, she held various roles in the company including groundskeeper and mailroom supervisor. By 2011, Jane had assumed the role of office manager.

In appreciation for her dedication and years of loyal service, at their January 2011 meeting, the AJM Industries board of directors resolved to increase Jane's monthly salary to $5,000 and to create a retirement plan for her. The retirement plan stated that Jane would receive retirement pay of $3,000 per month for life when she decided to retire. According to the retirement plan, Jane could retire whenever she wanted, though it stated that the board hoped she would continue working for many years.

Jane continued to work at AJM Industries until she retired in 2012. AJM Industries paid Jane her retirement pay of $3,000 until 2015 when the board of directors voted to discontinue her payments. Jane sued AJM Industries, asking the court to order AJM Industries to continue his $3,000 per month payments.

Based on the situation above, explain in detail;

  • What are the arguments that AJM Industries' promise to pay Jane $3,000 per month for life is enforceable?
  • What are the arguments that AJM Industries' promise is not enforceable?
  • Who would win?

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