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 a letter saying, "Because you helped me so much, I am going to send you a check for $100,000." Later you come to your senses and do not send the check. Your old professor sues you for the money:
A) you have to pay; there is a valid contract
B) you do not have to pay; the professor did not send a timely letter of acceptance
C) you do not have to pay; you were legally insane
D) you do not have to pay; promissory estoppel applies
E) none of the other choices

Question

Quizplus · Accepted Answer

The correct answer is E because the situation described does not constitute a valid contract under the law. For a contract to be valid, there must be an offer, acceptance, consideration, and mutual intent to enter into a legal agreement. In this scenario, the promise to send money was a gift rather than a contract because there was no consideration (something of value exchanged by both parties) from the professor, and there was no mutual agreement about the exchange. Additionally, promissory estoppel (choice D) typically applies in cases where one party relies on a promise to their detriment, which is not clearly the case here.

Twenty Years After You Take This Class You Are Successful