Question

Helping Hands, Inc., wants to repair its aging roof and hot water heater but lacks the funds to do so. Members of the charity publicize a call for donations to fund the necessary repairs. James is a long-time supporter and pledges $30,000 to the charity for this purpose. James pledges because he believes in the mission of the organization. Relying on James's pledge, the charity enters into construction and hiring contracts to begin work. When six months later Irene, the CEO of the charity, asks James for the donation, James declines to provide it. In this case, Helping Hands:

a. can enforce James's pledge because James and Helping Hands agreed on a gift.
b. cannot enforce James's pledge because it lacks sufficient consideration.
c. can enforce James's pledge on the grounds of promissory estoppel based on a charitable subscription.
d. cannot enforce James's pledge because the statute of limitations has expired.

Answer 1

The correct answer is letter C

Charitable Subscription is when a person writes or promises orally that there will be a charity, such as a sum of money or one that will be donated. In general, this is an agreement that has to be kept, especially if it was a written promise, as it is a document and a promise to be fulfilled for charity.

Answer 2

C). Can enforce James's pledge on the grounds of promissory estoppel based on a charitable subscription.

Step-by-step explanation:

A charitable subscription is demonstrated as a promise in which a party promises to make a donation to an educational, charitable, or religious institution.

As per the question, Helping Hands Inc. possesses the ability to 'enforce James's pledge on the grounds of promissory estoppel based on a charitable description'. Conventionally, such promises were not enforceable as they are not backed by appropriate legal consideration. But, the modern view allows adding exceptions in the general rule through application of the doctrine of promissory estoppel. Thus, Helping Hands is now allowed to enforce its promise on the basis of promissory estoppel. Hence, option C is the correct answer.