Caroline and Mia are alumni of Fulton-Dash University and Mia promises to give $2,000 to the...

Caroline and Mia are alumni of Fulton-Dash University and Mia promises to give $2,000 to the university for scholarships in 6 months. Caroline tells Fulton-Dash University that she will give the university $100,000 if the novel she is in the process of writing makes it on to the Amazon Best Seller List.

Evaluate the two donations to determine if:

a) the donation is conditional or unconditional

b) a promise to give exists

c) what type of restriction, if any, was placed on the donation.

Expert Solution

a. For the first donation - i.e. donation by Caroline of $100,000- the donation is a conditional one. This is because Caroline will pay the donation only on the condition that her novel becomes a best seller as per Amazon’s listing. The donation of $2,000 that Caroline has promised is an unconditional one and this amount will be given by her even if her novel does not feature in Amazon’s best seller list.

The second donation - i.e. donation by Mia - the donation is an unconditional one. Mia will pay the donation and has attached no conditions on this, unlike Caroline.

b. Caroline has an intention to pay $100,000 and a promise to give exists only for the unconditional donation of $2,000. In Mia’s case a promise to give exists.

Thus a promise to give exists in Caroline and Mia’s case towards $2,000 each. For Caroline the promise to pay $100,000 is merely an intention to pay as it is based on a condition with regards to future uncertain events.

c. The restriction that has been placed on the donation is that the amount will be restricted to $2000 if the novel is not a success. However, if the novel is a success then the cap of $2000 will go and Caroline will donate $100,000.

ekkarill92 answered 1 year ago

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