If a business promises to pay all of its employees $500 to quit smoking, such an arrangement is a(n)

A) valid, binding contract.
B) obligation.
C) commitment.
D) gratuitous promise.
E) quantum meruit.

Quantum Meruit

A legal principle allowing one to recover reasonable value of services rendered when no contract exists or when a contract is unenforceable.

Gratuitous Promise

A promise made without expecting anything in return, lacking the legal enforceability of a contract due to the absence of consideration.

Binding Contract

An agreement that is legally enforceable in a court of law, holding parties to their promises.