Nick Wright
Business Law 1
Professor Hunt
August 31st 2015

I.R.A.C. of Aon Risk Services Inc v. Meadors

Summary: Meadors sued Aon Risk Services Inc. for breach of a unilateral contract. Aon Risk Services (ARS Arkansas) and Combined Insurance Companies are subsidiaries of Aon Risk Services. A parent company issued a memo (Interdependency Memo) which encouraged ARS brokerage offices to put insurance companies with Aon-affiliated companies. It also gave bonuses for revenue generated under this new plan. Meadors put Dillard’s Department store in touch with Combined Insurance Company and in March of 2000 they came to an agreement where Dillard’s employees could purchase life insurance, disability and other insurances through their employer. Through the memo Meador was entitled to a bonus when this transaction came to an agreement and he did not receive it. Meadors sued and Aon Risk Services defence was that the memo was not sufficiently definite to constitute an offer.

Issue: Was the memo enough to constitute an offer and if so was the offer excepted, and was it completed.

Rule of Law: Recognizing that a unilateral contract is composed of an offer that invites acceptance in the form of actual performance. When the performance has occurred then the offer has been accepted, and thats when the contract has been formed. Arkansas recognizes Unilateral contracts

Analysis: The memo gave specific mathematical equations to figure out the bonus pool, so the court gave the decision that the memo was sufficient enough to constitute an offer and agreed with the jury’s decision.

Conclusion: The appeal court affirmed the jury's decision and awarded Meadors 2,406,522.60 in the Dillard’s