Bar Exam (US) Contracts: Question below is based on the following fact situation. Larry Browning...

Question

Question below is based on the following fact situation.

Larry Browning was a highly successful basketball coach at Kansas City University. Browning's Kansas City team, nicknamed the Hucksters, won the coveted National Collegiate Athletic Association (NCAA) championship in 2007. After winning the championship, Browning announced that he would be leaving Kansas City but wanted to continue coaching at a west coast university.

After Browning's announcement was made public, University of East Los Angeles (U.E.L.A.) fired its head coach and actively sought Browning to fill the coaching vacancy. The U.E.L.A. basketball team, which had been a traditional powerhouse through the 1980s and 1990s, had fallen on bad times and experienced consecutive losing seasons in 2005 and 2006 for the first time in 50 years. Under considerable alumni pressure, Joan Wooden, the president of U.E.L.A., decided to make a concerted effort to lure Browning to U.E.L.A. She met with Browning on two occasions, but their negotiations stalled after Browning demanded more money than the university was prepared to offer.

Thereafter, Wooden met with Don Vandeway, a wealthy booster who was interested in enhancing the U.E.L.A. basketball program, to see if he could help in recruiting Browning. Vandeway then contacted Browning and told him that if he would sign a coaching contract with U.E.L.A., Vandeway would pay him $100,000 a year as an unpublished supplement to his U.E.L.A. salary. Furthermore, Vandeway promised to contribute $5,000 to the U.E.L.A. athletic fund every time the basketball team won a game under Browning's tutelage. Browning thereupon signed a three-year contract as the U.E.L.A. head basketball coach at an annual salary of $125,000.

During Browning's first year as coach, the U.E.L.A. basketball team compiled a record of 18 wins and 12 losses. Vandeway, however, refused to pay anything to either Browning or the U.E.L.A. athletic fund. Note: assume for the purpose of these questions that the Vandeway- Browning agreement does not violate any rule of the university or of any intercollegiate athletic association.

If Browning brings a breach of contract action against Vandeway, judgment for whom?

AnswerChoose the correct answer.Choose all that apply. Correct Partially correct Incorrect Don't Know

  1. A
    Correct Answer
    Browning, because his signing a contract with U.E.L.A. was legally sufficient consideration to support Vandeway's promise to pay him the $100,000 year supplement.
  2. B
    Correct Answer
    Browning, because Vandeway, in effect, promised to make a $100,000 annual gift for charitable purposes, and such promises are enforceable without consideration.
  3. C
    Correct Answer
    Vandeway, because his promise to Browning was illusory and in contravention of public policy considerations.
  4. D
    Correct Answer
    Vandeway, because at the moment Browning signed an employment contract with U.E.L.A., he came under a pre-existing obligation that was insufficient consideration to support Vandeway's promise.
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