Question

Twenty years after you take this class you are successful and wealthy. Knowing that this class was the key to your success, you look up your old professor and send her a letter stating; "Because you helped me so much while I was a graduate business student, I am planning on sending you a check for $100,000." The Professor never relied on this promise and thus did not change her position. Later you come to your senses and do not send the check. Nevertheless, the professor files a lawsuit. Select the correct statement.

a) You should have to pay the professor; Your initial letter created a valid contract.
b) You should not have to pay; promissory estoppel applies.
c) You should not have to pay; you can allege insanity as a contractual defense.
d) You should not have to pay; the professor did not send a timely letter of acceptance.
e) You should not have to pay; there is a lack of consideration.

Answer 1

The correct answer is b) You should not have to pay; promissory estoppel applies. A lack of consideration and failure to send a timely letter of acceptance are additional factors supporting this answer.

Step-by-step explanation:

The correct answer is b) You should not have to pay; promissory estoppel applies. Promissory estoppel is a legal doctrine that allows a party to enforce a promise even if there is no valid contract. In this case, the professor can argue that she relied on your promise of sending her a check for $100,000 and took no action to change her position. Therefore, you may be prevented from going back on your promise.

Additionally, there is a lack of consideration for a valid contract. Consideration is a legal requirement for a contract, and it refers to something of value exchanged by the parties. In this scenario, the professor did not provide anything of value in return for your promise, so there is no consideration and no valid contract.

Insanity is not a valid defense in this case, as there is no indication that you were insane or unable to understand the consequences of your actions. The professor's failure to send a timely letter of acceptance is also irrelevant as you made the promise without requiring acceptance in writing.