Purchase Solution

Considerations for Bargain Promises

Not what you're looking for?

Ask Custom Question

Situation 1

Sam was getting along in years and wanted to provide for his grandson Dave's future. Over dinner one evening, Sam asked Dave what he would like Sam to leave him after Sam died. Dave replied that he was very fond of Sam's 1957 Thunderbird. "Very well," said Sam, "I will change my will to leave you the Thunderbird." "Thanks, Grandpa," Dave replied. "I'll make you proud."

Question 1

True or False: Sam and David formed a contract obligating Sam to amend his will to leave the Tbird to Dave. Answer True or False and provide legal support for your conclusion.

Situation 2

Suppose that Dave was a reckless 21-year old who was, in Sam's opinion, a bit too fond of cold beer, high stakes poker, and fast cars. Sam promised to will the Thunderbird to Dave if Dave would refrain from drinking and gambling and avoid speeding tickets for the rest of Sam's life. Dave promised to refrain from drinking and gambling and to avoid speeding tickets for the rest of Sam's life.

Question 2

Select the best answer and provide legal support for your selection:
A bilateral contract is formed. Sam must change his will.
A unilateral contract is formed. Sam is under no obligation to change his will.
A unilateral contract is formed. Sam must change his will.
A bilateral contract is formed. Sam is under no obligation to change his will.
Situation 3

Suppose that, in addition to promising to refrain from drinking and gambling and to avoid speeding tickets for the rest of Sam's life, Dave actually did as he promised for the rest of Sam's life.

Question 3

True of False: Sam and David formed a contract obligating Sam to amend his will to leave the Tbird to Dave. Answer True or False and provide legal support for your conclusion.

Situation 4

Returning to the facts of Question 2, suppose that Sam promised to will the Thunderbird to Dave if Dave would promise to refrain from drinking, gambling, and speeding for the rest of Sam's life. Dave replied that he promised to refrain from drinking, gambling, and speeding for the rest of Sam's life.

Question 4

Select the best answer and provide legal support for your selection:
A bilateral contract is formed. Sam must change his will.
A unilateral contract is formed. Sam is under no obligation to change his will.
A unilateral contract is formed. Sam must change his will.
A bilateral contract is formed. Same is under no obligation to change his will.
Situation 5

When Sam's regular nurse told Sam that she required back surgery and that the doctor estimated it would take at least six months for her to recover sufficiently to resume work, Sam sought to hire Jill to be his nurse for a period of up to six months, or until Sam's regular nurse became physically able to resume her duties. In exchange for Jill's services, Sam promised to either (1) pay Jill $5,000 per month or (2) provide Jill's family with suitable rent-free housing for as long as Jill was Sam's nurse.

Question 5

Sam made alternative promises to Jill as consideration for her services. Sam was able to choose between the two alternatives, yet a valid contract was formed. Why?

Purchase this Solution
Solution Summary

This solution discusses answers for a case study considering a bargain promise.

Solution Preview

Contracts
Sample Answers

Question #1: Did Sam and Dave form a contract obligating Sam to amend his will to leave the Thunderbird to Dave?

I: Unrelied upon donative promise made in a social setting
R: The general rule is that a simple donative promise is unenforceable because there is a lack of consideration.
A: One evening over dinner, Sam asked Dave what he wanted. Dave wanted Sam's Thunderbird. Sam stated that he would change his will.
Under Restatement Second §79, the question of consideration is simply if it exists, with no mention of sufficiency. Dave has provided no consideration in this case. There is no mention of a past moral obligation which in some jurisdictions may constitute consideration; there is no mention of payment; there is no mention of forbearance; and there is no mention of an act which may constitute a unilateral contract. Sam's promise is simply donative and given in a social setting (over dinner) - as shown in Schnell v. Nell 17 Ind. 29 (1861) a gratuitous promise is not enforceable. Over dinner, Sam did not have a "contract making" state of mind as evidenced by his lack of a request for consideration, that is, his offer was not given as part of a bargain.
Unless Sam changes his will, there is no gift which as shown in Gruen v. Gruen, 68 N.Y.2d 48 (1986) which may be enforceable to change custody of the Thunderbird.
Consideration is not an absolute necessity if Dave could show that he reasonably relied on Sam's promise in a manner that the promisor (Sam) should have reasonably expected.
C: At the point of time immediately following Sam's conversation with Dave, there is no legally enforceable contract as there was no consideration.

Question #2: Did Sam and Dave form a contract obligating Sam to amend his will to leave the Thunderbird to Dave?

I: Conditional donative promise vs. a bargain promise
R: The difference between a conditional donative promise and a bargain is that in a conditional donative promise, fulfillment of the condition is not the price of the promisor's performance. If the parties view the performance of the condition as the price of the promise, there is a bargain and there is a contract as demonstrated in Hamer v. Sidway, 124 N.Y. 538 (1891).
A: Sam promised to will the Thunderbird to Dave if Dave would refrain from drinking and gambling and avoid speeding tickets for the rest of Dave's ...

Purchase this Solution
Free BrainMass Quizzes
Contract Requirments

How much do you know about the legal requirements for a contract? Find out with this quiz!

Title VII

This Quiz pertains to the spectrum of Human Rights through Title VII

Criminal Defenses Review

Test your knowledge of the basics of criminal law and defenses with this quiz.

Constitutional Law Rights

How much do you know about Constitutional Law Rights? Find out with this quiz!

Evidence

Do you know your evidence objections? Find out with this quiz!

View More Free Quizzes
Related BrainMass Solutions

  • Contrasting a Bilateral Contract and a Unilateral Contract

    Bilateral Contracts - an exchange of promises on both sides. each person is a promisee and promisor. Normally one person is a offeror and another is an acceptor. Both parties exchange PROMISES.

  • This addresses the use of company email for union issues.

    These considerations must be addressed in regards to labor relations discussions before a decision is made regarding the use of email for labor relations discussions.

  • Criteria used to determine if a lease is classified

    What are the other considerations for a lessor when determining if and how to record a capital lease? What are the procedures used by the lessor to account for a capital lease.

  • Consideration: Union Agreement

    654764 Consideration: Union Agreement Identify two considerations that would be needed in a negotiation session. Make sure to identify the two parties in the process and why you feel the need for the two considerations listed.

  • Contracts

    Not all promises create contracts. As you will read in the text, contracts are formed when parties bargain and reach an agreement. But sometimes one person makes a promise that causes another person who relies on the promise to be harmed.

  • Italian Renaissance and Medieval West Period

    Once the plague dissipated the ruling class was forced to acknowledge these peasants as the workforce was now in strong demand and could bargain for higher wages, better working conditions, etc.

  • Contracts

    Not all promises create contracts. As you will read in the text, contracts are formed when parties bargain and reach an agreement. But sometimes one person makes a promise that causes another person who relies on the promise to be harmed.

  • What elements must be included in a lease in order for it

    the lease contains a bargain purchase option (all leases with a bargain purchase option for hospital, auxiliary, or service enterprises, where there is a likelihood that the option will be exercised, should be considered as capital leases); ?

  • Elements of a Contract and Considerations

    http://www.casebriefs.com/blog/law/contracts/contracts-keyed-to-knapp/enforcing-promises-bases-of-legal-obligation/kirksey-v-kirksey-2/2/ The elements of a contract are determined. Considerations are analyzed.

View More Related Solutions