Get that “Discretionary” “Guarantee” In Writing

• Posted by Geoffrey G. Gussis on August 23rd, 2005


• Filed in Careers (In-house Jobs)

If an offer letter states that you may get a discretionary year-end bonus, and you are fired before the end of the year, do you get a pro-rata portion of the bonus? The Seventh Circuit says no in a case involving a general counsel.

The lesson: if you want something to be guaranteed, make sure it is clear in your agreement.

Link: ContractsProf Blog: Get that "Discretionary" "Guarantee" In Writing.