1998 Fall Ohio State Contracts Exam

In 1992, when Sally's husband Joe, left her, Joe's wealthy brother Kevin helped her out financially. Kevin sent Sally $1500 a month for six months and paid $3,000 for her tuition in a paralegal program near Sally's home. In time, Sally found a good job and recovered financially, purchasing a small house on the outskirts of town, where she has continued to raise her children. Sally has always felt grateful toward Kevin for his generosity, but, because of Kevin's wealth, has never known how to repay him for his kindness.

Last year, however, Kevin lost his job in California. In addition, his investment portfolio suffered a severe setback. He was forced to file a bankruptcy petition and was left with only $500 cash . When Sally learned of Kevin's plight, she sent him the following letter:

Dear Kevin,

As you know, I've always been grateful for the help you provided the kids and me when Joe left and have always wanted to repay you for your kindness somehow. If you want, please feel free to move to Ohio and stay with us for as long as you like. There is plenty of room here and I'm sure you can make yourself useful taking care of chores around the house and taking over some of the childcare responsibilities while I am at work. You would no doubt save me more money than it would cost to feed you.

There is a new factory opening in town in six months, and I'm sure you'll be able to get a job there, once it opens.

Your grateful sister in law

Sally

Upon receipt of this letter, Kevin called Sally immediately and told her that he'd be there in a week. Although he'd been offered a job, paying $2000 per month, he decided that he'd have a good chance of getting one of the $3,000 per month factory jobs he was qualified for when the factory near Sally's home opened.

Kevin spent his last $500 travelling to Ohio. He moved in with Sally, and, staying in the guest bedroom, started taking care of routine household chores for her. He also watched Sally's kids after school, before Sally got home from work. This effort saved Sally the $100 per week she had been paying for babysitting services. The third week he was there, he installed a new roof on Sally's house, saving her more than $3000 in labor.

Two months later, Sally's boyfriend, Roger, asked Sally to marry him. Convinced that Roger would be a great husband and father, Sally agreed. The day after Sally and Roger became engaged, Sally told Kevin that he would have to leave. Roger hadn't liked Kevin anyway and was sure that it would undermine his authority as the children's step father if Kevin remained in the house.

Kevin tried to get the $2,000 a month job he had been offered back in California, but was told that it had been filled and that the only thing available was a job paying $1000 a month. Kevin knew he couldn't live on this meager amount back in California, and in any event, didn't have any money to return there. Accordingly, Kevin sued Sally seeking a court order permitting him to remain in Sally's house as Sally had promised or, alternatively, for any damages to which he might be entitled.