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Question: Dave called Paula, his girlfriend, and said, "I know that you are having problems paying your daughter's college bills, so I will give you $4,000 per month until she finishes college, or for four years, whichever happens first." Paula said, "Thank you very much for that offer and I will take it." At the time of this phone call Paula's daughter was already in her first semester of college.

Their affair ended in 2016. Paula has indicated that Dave made payments to her between 2015 and December 2016. He has paid a total of $72,000. (That is 18 months of payments - from the original phone call to their break up).

Paula has asked for damages totaling $128,000 (the remainder of the 4 years). You may assume that her daughter is going to college and will graduate at the end of 4 years.

There are transcripts of the phone conversations between Dave and Paula In the suit, Paula charged that Dave made a legally binding contract to provide financial support for her and her daughter.

Do a complete IRAC evaluation as to whether Paula is right about the contract. Does she have legal rights against Dave based upon the promises Dave made to her. You must state all the legal issue, all the applicable rule(s) of law and do a complete analysis of each legal issue to reach a conclusion. The conclusion needs to state who will win and why - Dave or Paula.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92579627

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