Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 4

After Prudential Bache Securities signed a confidentiality agreement, Robert Apfel allowed it to review a system he proposed to permit bonds to be traded and held solely by means of computerized book entries. Prudential then contracted with Apfel to pay him to use the system even if the technique became public knowledge. The first year, Prudential was the only underwriter using such a system. After paying Apfel for several years, Prudential stopped. By that time, investment banks were using computerized systems more and more. Apfel sued. Prudential said no contract existed because Apfel had given no consideration. Had he?