Question

Suppose that U.S. Robotics is a company that uses robots to help drug dealers to "cook" crystal methamphetamine, an illegal drug. Chris works for Stephen under the original contract that states he will receive the stock if, after a year, Stephan is personally satisfied with his work. This time, happily, Stephen does not die. Suppose after a year of wonderful work Chris asks Stephen for his $1 million worth of Robotics stock but Stephen refuses to give it to him. 1. Will Stephen be able to withhold the stock based on Chris' performance?2. Does Stephen have any other arguments as to why the contract is unenforceable?

Answer 1

1) Yes, because it is a personal satisfaction contract.

As per the contract, Stephen would give the stock to Chris, if he is personally satisfied with Chris's work. Hence, Stephen and Chris entered a personal satisfaction contract, which is based on a subjective evaluations of Chris's work by Stephen. Therefore, even if Chris does good work, Stephen may still not be personally satisfied in such a scenario, it would be extremely difficult for Chris to enforce the contract in court if Stephen wishes to withhold the stock.

2) Yes, illegality-

The contract between Stephen and Chris is related to methamphetamine, which is an illegal drug, Hence the contract itself is an illegal one and cannot be enforced in court.

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