Question

In: Operations Management

Hubert was a very wealthy married businessman who had a mistress named Stormy Knight. Hubert bought...

Hubert was a very wealthy married businessman who had a mistress named Stormy Knight. Hubert bought an apartment for her for $800,000 some three years ago. He also had been giving her $200,000 a year for her living expenses over the past ten years.

Unfortunately, Hubert suddenly died and had not left anything in his will for Stormy Knight.

Stormy Knight claimed against the estate saying that Hubert had promised her $200,000 a year for the rest of her life. The relatives of Hubert say there is no such valid contract.

Stormy knight has a scribbled note from Hubert promising $200,000 a year for the rest of her life.

1)    What type of agreement is this? Is it legally enforceable?

2)     What factors would the court consider in determining whether

there was an enforceable contract for the $200,000 a year?

3)     What are the cases that you can rely on?

4)     If there is an enforceable contract are there any additional arguments

   that the relatives could use alleging the contract is invalid?

Solutions

Expert Solution

1. Yes, this document can act as a promissory note or written contract which can be legally enforceable. This can be treated as a written agreement. A contract to be valid should have three elements, offer, acceptance, and consideration and these are present in this note.

2. The factors of offer, acceptance, and consideration of $200000 a year would be considered by the court.

3. Any case related to the written contractual agreement can be sought as a predicament in this case where the validity of the contract and its legality was enforced by having the written, offer, acceptance, and consideration.

4. In the case of this enforceable contract, the additional arguments that the relatives could use are evidence of any other will which expressly mentioned the reference to the written contract between the Hubert and stormy regarding its cancellation and date of creation of the will where there is nothing mentioned about Stormy's share.


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