contract-law
Can one use a contract to enforce a bluff?
<p>Amy has been working for Bill for 15 years.  Despite the fact that Bill runs a very profitable company, and that Amy is a very productive employee, Bill has not given Amy a raise in 15 years.  Bill has long promised he will give Amy a raise sometime in the future, but never does.   Amy has threatened to quit, but Bill ignores this because he knows quitting and finding a new job will pose significant inconvenience to Amy. </p>

<p>So Amy goes to a third party, a signs a contract with the third party.  The contract states that unless Amy has received a raise of $2.00/hr by January 1, the third party is entitled to all subsequent wages she earns from Bill.  </p>

<p>The third party then gives the contract to Bill. Bill sees that if this contract is enforceable, then Amy must be very serious.  Bill is a rational businessman, and calculates that the cost of giving Amy her well-deserved raise is much less than bringing on a new, untrained employee.</p>

<p>The only question is: Is this enforceable? </p>

<p>EDIT:  Amy pays the third party a small fee. The third party is a business that specializes in these types of contracts.  </p>

<p>(Amy and Bill are not real people, so they are having trouble contacting an  attorney in their jurisdiction.) </p>

<p>It's not a contract because there is no consideration on the part of the third party. It's not enforceable.</p>

<p>Consideration is either:</p>

<p>a) giving up (or doing) something that you have a legal right to not give up (or not do) or</p>

<p>b) not giving up (or not doing) something that you have a right to give up (or do).</p>

<p>There is no contract in this situation.</p>

<p>Amy hasn't received any consideration from the "third party".</p>

<p>There is no contract because Amy did not give the third party consideration for the contract and it is void for public policy reasons.  The contract is unconscionable or unreasonably unfair and oppressive to Amy. The contract may be illegal in a jurisdiction that prohibits gambling or gambling on employment contracts. The contract may also be illegal for being an unreasonable restraint on trade because Amy would be required to end her employment with Bill unless she forgoes her entire paycheck. </p>
