© Jeffrey T. Ferriell
QUESTION 1
When Tom, Ann, Charlie, & Bill were young, their Aunt Todd provided each of them
with enough money to pay for their college and graduate school educations. Never wealthy,
Aunt Todd made sacrifices to make sure her nieces and nephews all obtained a good
education. As a result of this generosity, Aunt Todd did not have enough money to support
herself following her retirement.
When it became clear that Aunt Todd would not have enough money to support herself as
an elderly woman, Tom decided that something had to be done. He called Ann, Charlie, &
Bill and informed them of Aunt Todd's financial situation. Tom told them that $300 per
month from each would be sufficient to pay for Aunt Todd's living expenses and to build a
small nest egg to pay for any emergencies that arose. A week later, the four of them met
and agreed with one another to pay $300 per month to Aunt Todd. They also each signed and
sent Aunt Todd a letter which provided:
In consideration of the education I received, and in return for your continued love,
affection, and support, I hereby promise to provide you with the sum of $300 per month
during the period of your retirement.
For one year Tom, Ann, Charlie, & Bill each contributed $300 per month to support
Aunt Todd. After a year, however, Charlie quit making his monthly payments. After all, he
thought, there was already $3600 available in the emergency fund from the money they each
had been paying. Tom, Ann, & Bill continued making their $300 payments, which turned
out to be sufficient to pay for Aunt Todd's monthly living expenses.
Two years later Aunt Todd became ill. She recovered, but her medical bills totaled
$10,800. Because Charlie had not been making payments for the past two years, however,
there was only $3600 in the bank. Tom wrote to Charlie and told him that he owed $7200 to
make up for the shortfall and that if he didn't pay Tom would consult an attorney. Charlie
wrote back saying: "She's going to die soon no matter what we do, but I'll pay you
the $7200, at the end of the month. Just get off my back."
Upon receipt of Charlie's letter, Tom went ahead and paid the remaining $7200 medical bill
out of his own pocket. A few days later, despite the best medical care available, Aunt
Todd passed away.
Two months have passed since Aunt Todd's funeral. Charlie has thus far failed to pay
Tom the $7200.
Draft a memo analyzing the possible grounds for recovery from Charlie. Explain your reasoning fully. Limit your answer to 4 pages in a bluebook.
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