Question

.    Ms. Jiamin Kuang finally got the job she always wanted, one that is close to the Pacific Ocean and pays pretty well -- she becomes Google’s Chief of China Business Development. To celebrate, Jiamin ditches her old ratty 2019 Rolls Royce automobile and buys a 2020 $1.4 million Bugatti. Ever the generous person, Jiamin promises to give her old Rolls Royce to Mr. Eric Ng.   Eric sells his 1978 primer grey Dodge Dart for $4.25, about 75 cents less than what it’s worth, because he is expecting to get a Rolls from his rich and generous friend, Jiamin. Sadly for Eric, Jiamin later changes her mind and decides to keep her old car. If Eric sues his rich but as it turns out not so generous friend, Jiamin , the court most likely will:

a. Require Eric to pay at least $4.25 in damages to Forrest for the loss Eric incurred in

connection with her failure to keep her promise.

b. Require Jiamin to give Eric the Rolls Royce because her promise was illusory.

c. Not require Jiamin to do anything because this was a gift promise.

d. Require Jiamin to give the Rolls Royce because the sale of his car was consideration for the Rolls.

ANSWER: __________

6.    The “Euros” Club (BUS 320 Survivors Ammari Anas, Caroline Maxwell and Hanna Knippers) are at it again. This time they are joined by legendary BUS 320 Survivor Legend Nguyen drinking beers and whiskey shots at the Pig & Whistle Bar. There had been no discussion of who would pay for the drinks. After the third, or was it the eighth, twelfth or maybe twentieth round of drinks, Legend says, “I will pay for everything tonight including your drinks.” Ever the joker, a couple of minutes later Legend says, “Just kidding!” The “Euros” Club members want to force Legend to honor his promise to pay for everything and they threaten to sue. In this circumstance, a court would:

a. Require Legend to follow through on the promise under the doctrine of promissory estoppel.

b. Not require Legend to follow through on his promise because it was gratuitous one.

c. Require Legend to follow through on the promise if his drinking companions had previously paid a

comparable amount for food or drinks consumed by Legend.

d. Require Legend to follow through on the promise if it would be a hardship for his drinking

companions to pay for their own drinks.

e. Not require Legend to follow through on the promise because it would encourage the “Euros” Club

members to party like "rock stars", like they needed any prompting to party!

Answer 1

1)A valid contract involves offer, acceptance and consideration. A promise to make a gift in the future is in essence gratituous with unilateral consideration. Jiamin promised Eric to gift him his old car but there was no consideration, no offer and no valid acceptance. Thus, Jiamin is not bound by contract.

The court would not require Jiamin to do anything because it was a gift promise.

The answer is C.

6) A valid contract involves offer, acceptance and consideration. A promise to pay for drinks under the influence of alcohol is at most a gratuitous one. Further, legend cannot be said to be of sound mind after consumption of a huge amount of alcohol.There is no valid agreement or contract in place.

The court would not require Legend to follow through on his promise because it was gratuitous one.

The answer is B.