Please write your answer in the IRAC format. Edward is a licensed physician. One
ID: 419318 • Letter: P
Question
Please write your answer in the IRAC format.
Edward is a licensed physician. One of his patients was an elderly man named Winston. Edward treated Winston for Alzheimer's disease, but since he believed he was destitute, he never charged him for his medical services.
In late Fall Winston went to see Edward for a routine checkup and Winston said to Edward, "I want to pay you back for all you have done for me over the years. If you will care for me for the rest of my life, I will give you my office building. I'm frightened because I have no heirs and you are the only one who cares for me. I need to know now that I can depend on you." Edward doubted that Winston owned any office building, but said nothing in response and just completed his examination of Winston and gave him some medication.
Since Winston made the statement two years went by. Winston's health worsened and Edward continued to treat him. Edward forgot about Winston's statement regarding the office building.
After five years of treating Winston, Edward learned that Winston was indeed the owner of the office building. Edward, remembering of what Winston had told him, immediately wrote a note to Winston stating, I accept your offer and promise to provide you with all the medical services that you may need for the rest of your life." Edward signed the note, put it into a stamped envelope addressed to Winston, and placed the envelope outside his front door for the postman to pick up when he arrived to deliver the next day's mail.
Winston died in his sleep that night. The postman picked up Edward's letter the following morning and it was delivered to Winston's home a day later. The services rendered by Edward to Winston over the last seven years were worth several thousand dollars; the office building is worth a million dollars.
Does Edward have an enforceable contract for the transfer of the office building? Discuss.
Explanation / Answer
Common law will govern this type of contract that recognizes the performance of a promise as a duty. To be legally binding as a contract, a promise must be exchanged for adequate consideration or a bargained for exchange. Adequate consideration is a benefit or detriment which a party receives which reasonably and fairly induces them to make the promise or contract.
The creation of a binding contract that the courts will enforce requires the contracting parties to meet a number of requirements before an agreement creates an enforceable contract: 1. An intention to be bound to a legally binding contract or to create a legal relationship; 2. Offer; 3. Acceptance; (Mutual Assent) 4. Consideration; 5. Capacity to contract; and 6. Legality. the offer must be communicated to the other person before one can accept. an offer must be communicated by the offeror to the offeree before acceptance can take place. The first requirement for a valid contract must be the intention on the part of the person making a offer to be bound by the terms. This intention to create a legal relationship is an essential element of a valid contract.
In this case, when Winston said to Edward,
"I want to pay you back for all you have done for me over the years. If you will care for me for the rest of my life, I will give you my office building. I'm frightened because I have no heirs and you are the only one who cares for me. I need to know now that I can depend on you." This was an essential element of the contract is Winston's willingness to be legally bound, he thus created a legal relationship at the time he made the offer.
This was an offer from Winston to Edward and he said that "he needed to know now" was the form of acceptance he expected and the only way Edward could accept the offer.
II. Acceptance, must be unconditional and made in conformity with the terms by the offeror. The normal method of accepting an offer is to state or write, “I accept your offer,”. While both an offer and its acceptance may be made or inferred from the words or the conduct of the parties. The words or conduct must correspond in the manner requested or implied by the offeror in the offer. The acceptance must take the form that will indicate to the offeror that the offeree has accepted the offer.
Edward was silent as to his acceptance of Winston's offer because he did not believe that Winston owned a building. Edward kept treating Winston as he had done in the past believing him to be destitute and he never charged him for his services prior to Winston's offer. Edward did not expect payment for his services as he never charged Winston.
Edwards conduct must convey the offeree’s intentions to the offeror in the manner contemplated for acceptance. He never said to Winston "I accept your offer" but he did keep treating him. He must have accepted the offer in some form when the offer was made. Winston stated "he needed to know now" was the time for acceptance. Edward did or said anything to accept Winston's offer and waiting 5 years to write a note and put it in the mail is not a valid acceptance per the terms of the offeror's offer, which was "now".
There is nothing in the facts that tell us that Winston agreed for the offer to be open for 5 years. The facts tell us that Winston said "I need to know now" was the time for acceptance. Because Edward did not accept the offer as Winston stated, it does not matter what Edward did 5 years later, there is no valid acceptance at the time specified by Winston, which was "now", not 5 years later.