Contract Law vs. Gift Promises: Generally, promises to give gifts are not enforceable by law. The law does not usually intervene in promises that are simply about giving gifts.
Moral Obligation: There may be a moral obligation to fulfill a gift promise, but it’s not legally binding.
Main Case Study: Weavertown Transport Leasing vs. Moran
Background: Involves Pittsburgh Steelers season tickets and seat licenses.
Issue: Moran, an employee at Weavertown, argued that he received no consideration for the tickets and licenses given to his employer, as Weavertown never assumed his obligations to the Steelers.
Facts of the Case
Moran offered to sell seat license fees and season tickets to Weavertown, his employer.
Weavertown paid for the licenses and tickets but was not able to assume the license rights.
Moran resigned, refused to transfer the seat licenses, leading to a lawsuit.
Legal Arguments and Court Findings
Consideration Argument: Moran contended that his arrangement with Weavertown was gratuitous and conditional on Weavertown paying the Steelers.
Court Ruling: The court found the arrangement to be a conditional gift, not a contract with consideration.
Concept of Conditional Gifts
Explained using Samuel Williston’s Hypothetical:
A man offers a coat on credit if someone visits a shop. No consideration as the walk isn’t the bargained-for exchange.
Application to Moran's Case: Weavertown's payments were seen as setting up a conditional gift from Moran.
Reflections on the Case
Complex Interactions: The interaction seemed more complex than a mere gift, considering potential business benefits and employee-employer dynamics.
Trial Court's Initial Finding: Initially found a contract, presuming consideration existed, though this was later reversed.
Consideration in Contracts
Restatement Second of Contracts, Section 71: Consideration requires a bargained-for exchange.
Potential Bargaining: Moran might have aimed to improve his professional position through the arrangement.
Conclusion
Outcome: No legal consideration was found due to lack of evidence pointing to a bargained-for agreement.
Future Lessons: The next class will cover the pre-existing duty doctrine, another reason why contracts may fail for lack of consideration.