Reference no: EM131506714

Aon Risk Services, Inc. (ARS Arkansas), and Combined Insurance Companies are subsidiaries of Aon Corporation. Aon issued an “Interdependency Memo” in February 2000, which was designed to motivate ARS brokerage offices to place insurance business with Aon-affiliated companies through a bonus pool for revenues generated under the plan. Under the terms of the memo, Aon agreed to pay “30% of a nnualized premium on all life products over 15-year term plus 15% 1st year for all other products.” John Meadors saw the memo in February 2000 and believed it would entitle him to this compensation over and above his employment contract. Meadors put Combined in touch with Dillard’s Department Stores and on March 24, 2000, Dillard’s and Combined executed a five-year agreement whereby Dillard’s employees could purchase life, disability, and other insurance policies through workplace enrollment. When Meadors did not receive bonus-pool money generated by the transaction, he sued his employer for breach of contract. His employer’s defense was that the memo was not sufficiently definite to constitute an offer. Discuss whether there was a contract formed for the bonus compensation system. Are you able to classify the type of contract? [Aon Risk Services Inc. v Meadors, 267 S.W.3d 603 (Ark. App. 2007)]

Jennings, Marianne M.. Business: Its Legal, Ethical, and Global Environment (Page 409). Cengage Learning. Kindle Edition.