In: Finance
Melissa, a fundraising associate for Harrelson University, is an attractive, blond, 30-something, who has a vivacious personality. She has been having lunch occasionally with a Harrelson alumnus, Emerson, scion of a wealthy oil magnate, with the intent of convincing Emerson to make a major gift to the University. Melissa has noticed that Emerson has drifted off occasionally during their lunch meetings, calling her by the name of his late wife, and demonstrating lapses of memory. She thinks he may be starting to have symptoms of Alzheimer's or perhaps some other dementia, and is motivated to begin closing the deal before his family takes legal action and obtains power of attorney over Emerson's financial affairs. She does not think the university would fare well if Emerson's family gets complete control over his wealth, and she thinks all of the work she has done would be wasted. She convinces Emerson to meet with her for lunch the next day, and brings with her papers that provide for Emerson pledging half of his wealth, $40 million. She winces as Emerson appears unable to sign his name on the papers, and she leans over to help him. She rationalizes that she does not stand to benefit by this gift, that thousands of students of Harrelson will benefit, and that when Emerson was perfectly lucid and sharp, he always expressed a desire to leave a lasting legacy and assist his alma mater in its mission to become a better institution.
Respond to the following questions in a post of no less than 200 words.
Is Melissa's behavior ethical?
Is Melissa's behavior legal?
What could Melissa do to create an enforceable contract?
a. No, Melissa's behavior is not ethical, it is unscrupulous and unconscionable. She takes advantage of the fact that Emerson is currently not in sound mind, and she is in a position to dominate his will and actions, for the sole purpose of closing the deal by hook or by crook. This will posiibly give her a promotion or a large raise.
b. No, Melissa's behavior is not legal. A signature represents the authorization of the person signing a document to the contents thereof, and the document should be freely executed without any force or coercion. When Emerson is unable to sign his name, she leans over trying to help him.
Secondly, even if Emerson had been able to put his signature on the necessary papers, the contract would have been void ( not enforceable) , as Emerson, not being in sound mind, is incompetent to enter into a contract.
c. Melissa should have approached the executor of Emerson's estate with the proposal, or his family. An enforceable contract can only be created by the following:
In the given situation, as the funds are expected to be given as a donation to the university, consideration, or a quid pro quo is not required. All other conditions must exist for an enforceable contract.