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Dr. Smith and his wife Mary announced at a church event in January that they would fund the construction of a new classroom wing in the church's elementary school, and that they would make that payment to the Church the following September. The church immediately found a construction company that agreed to construct the elementary wing immediately, and that by the time the construction is finished, it would be September and the contractor could get paid. In July, Dr. Smith found that he had cancer and would have to stop practicing medicine for at least two years, and might never be able to go back to work. As a result, he reluctantly said that he and his wife could not pay for any construction of the church's school. Dr. Smith's attorney pointed out that there was nothing in writing to support the donation by the Smiths to the church, and that in fact there was no contract at all, because the Smiths did not receive any legal consideration from the transaction - it was a one-way promise, at best. Will the church be able to force Dr. Smith to pay for the construction of the school wing? A. No, because this is not a contract. B. Yes. C. Yes, but only if the church can prove that Dr. Smith in fact knew that he had cancer before he made the announcement of the gift. D. No, because this is a contract but not one that is enforceable because it involves an interest in land and is not in writing.

Operation Management, Management Studies

  • Category:- Operation Management
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