John Harrington, Jr. (“Junior”) is a 24-year-old, 3-pack-per-day smoker. John Ha

Question

John Harrington, Jr. (“Junior”) is a 24-year-old, 3-pack-per-day smoker. John Harrington, Sr. (“Senior”) is a very concerned parent. On January 1, father announces to son, “Junior, if you will stop smoking for the entire year, I will pay you $5,000.” Senior believes that if Junior will stop smoking for one year, he will “kick the habit.” Junior reluctantly accepts his father’s terms, and extinguishes his half-smoked cigarette with the heel of his boot.

On January 1 of the following year, Junior approaches Senior and says “Dad, time to pay up.” Senior has no reason to doubt that Junior has refrained from smoking for an entire year, but states “Son, this was for your benefit. The gift I have given you is the gift of life, and you are now likely to enjoy that gift longer, because you are now much less likely to contract cancer. Health statistics show that non-smokers live ten years longer than smokers. Enjoy your newfound life, but I will not pay you the $5,000.”

Does Senior owe Junior the $5,000? Is there an enforceable contract between father and son? If there is not an enforceable contract, does Junior have any other legal or equitable theory of recovery? Is Senior ethically obligated to pay Junior the $5,000?

Explanation / Answer

This is an oral or a verbal contract between John junior (son) and John senior (father). An oral contract can be enforced only if it is admitted by the involved parties. Let's assume that the parties have admitted to the contract. So now we will have to look at the basic requirements of an enforceable contract:

a. Offer - the offer was made by John senior. He made a proposal which was certain in terms.

b. Acceptance - the offer was accepted by John junior.

c. Both John junior and senior were competent parties.

d. The subject matter in this case is the requirement to stop smoking by John junior. This subject matter is lawful.

e. There is mutuality of obligation. Both John junior and John senior have agreed on the same thing and at the same time. None of the parties have been misled about the terms of the contract.

f. There is presence of consideration in this case. John junior has promised to quit smoking and John senior has agreed to pay $5,000.

So, as all the above conditions have been satisfies, there is an enforceable contract and Senior owes $5,000 to Junior.

Also, leaving aside the legal aspects, John Senior is ethically obligated to pay his son $5,000. It is a question of taking the right decision. Not paying his son will be a wrong conduct and will lead to trust issues between father and son. The father had promised to pay $5,000 and should, as a right conduct, pay the amount to his son.

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