1. Mr. A has bought a new 90-HP out-board motor. He told his friend, Mr. B that he will give him his old 35-HP motor as soon as the new one arrives. Mr. B has a small boat, but this small boat cannot accommodate the old engine. Mr. B needs to modify his small boat, but he will have to spent expensive modification. With Mr. A’s suggestion, he bought a new boat. When the new 90-HP motor arrived, Mr. A changed his mind and decided to sell the old one to other party.

Is there a binding contract between Mr. A & Mr. B? Please state your reasons.

2. Dr. John and Mrs. Jane Marquez were generous philanthropists of BG Hospital. Dr. Marquez, who bequeathed $2.8Million for the hospital, had been recognized by naming the hospital's coronary and cardiac diagnostic unit after him. The city is on the process of restructuring health care system. In response, the BG Hospital Foundation launched a campaign to raise funds to expand the hospital. Mrs. Marquez, the wife of the late Dr. John Marquez, was approached by the hospital's Chief Executive Officer to become a potential lead donor for the campaign and the suggested amount was $1Million.

The foundation presented with a formal proposal that outlined the project and the hospital's interest in honouring her and the memory of Dr. Marquez by naming the new critical care unit after them. Of course, the renaming requires approval from the board of trustees. Mrs. Marquez seek the advice of her accountant and later signed the document pledging to donate $1Million over a five-year period to the BG Hospital Foundation. She made the first instalment of $200,000 and died a month later. In her will, she left one-fifth of her estate to the hospital. After Mrs. Marquis died, her estate refused to pay the balance of $800,000 owing on the pledge, claiming that the estate gift replaced it.

Is the pledge document a contract enforceable in law or merely "a naked promise"?

Question

1. Mr. A has bought a new 90-HP out-board motor. He told his friend, Mr. B that he will give him his old 35-HP motor as soon as the new one arrives. Mr. B has a small boat, but this small boat cannot accommodate the old engine. Mr. B needs to modify his small boat, but he will have to spent expensive modification. With Mr. A’s suggestion, he bought a new boat. When the new 90-HP motor arrived, Mr. A changed his mind and decided to sell the old one to other party.

Is there a binding contract between Mr. A & Mr. B? Please state your reasons.

2. Dr. John and Mrs. Jane Marquez were generous philanthropists of BG Hospital. Dr. Marquez, who bequeathed $2.8Million for the hospital, had been recognized by naming the hospital's coronary and cardiac diagnostic unit after him. The city is on the process of restructuring health care system. In response, the BG Hospital Foundation launched a campaign to raise funds to expand the hospital. Mrs. Marquez, the wife of the late Dr. John Marquez, was approached by the hospital's Chief Executive Officer to become a potential lead donor for the campaign and the suggested amount was $1Million.

The foundation presented with a formal proposal that outlined the project and the hospital's interest in honouring her and the memory of Dr. Marquez by naming the new critical care unit after them. Of course, the renaming requires approval from the board of trustees. Mrs. Marquez seek the advice of her accountant and later signed the document pledging to donate $1Million over a five-year period to the BG Hospital Foundation. She made the first instalment of $200,000 and died a month later. In her will, she left one-fifth of her estate to the hospital. After Mrs. Marquis died, her estate refused to pay the balance of $800,000 owing on the pledge, claiming that the estate gift replaced it.

Is the pledge document a contract enforceable in law or merely "a naked promise"?

Accepted Answer

“Since you have posted multiple questions, we will provide the solution only to the first question…