Frank works as a cellphone salesman. he has worked at the same company for the past two years, and one day his boss approaches him with good news. he says because frank has sold so many phones lately, he is going to give frank a $500 bonus. three weeks later, frank has still not received the bonus. can frank sue his boss to enforce the promise?

The answer is: NO

Explanation:

In order for a contract to exist, consideration must be present. Consideration is the benefit bargained between the two parties in a contract. Consideration is considered the main reason of why a contract exists.

Consideration doesn't exist in this case, since Frank didn't exchange anything in order to get the $500. His boss offered the money for his past performance, but past consideration doesn't create a new contract. In the past he sold cellphones and his boss already paid him for doing so.  

answer; is usually (less than) the socially optimal level of consumption;

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