Multistate Bar Examination Practice Question

Jane promises to pay Tom $5,000 if he quits his job and starts working exclusively for her new business. Relying on Jane's promise, Tom resigns from his current position and invests in equipment for the business. Before Tom begins working for Jane, she decides not to proceed and refuses to pay him. Which of the following best supports Tom's claim for compensation?

  • Tom can recover damages based on his reliance on Jane’s promise to compensate him.

  • Tom can seek specific performance requiring Jane to hire him as promised.

  • Tom should demonstrate that there was a written contract detailing the payment terms.

  • Tom can recover if he provided consideration in exchange for Jane’s promise.

Multistate Bar Examination
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