Chu, a Non-Swimmer, Fell Off a Ferry Boat into the Lake

question 18

Multiple Choice

Chu, a non-swimmer, fell off a ferry boat into the lake. "Help!" he cried. "$100 to the person who saves me!" Frances, a passenger on the ferry, then jumped in and held Chu's head above water until the boat's dinghy could reach them.

• A) Chu must pay Frances the reward since, by her action, she accepted his offer and gave consideration for his promise.
• B) Since Frances did not accept his offer, although what she did would have been consideration if there had been a contract, the offer is revocable and he need not pay her $100.
• C) If Frances had been under a legal duty to save Chu, even if there was a contract that he should pay her $100 for the rescue, Chu will not have to pay her.
• D) Chu must pay Frances the reward since, by her action, she accepted his offer and gave consideration for his promise and if Frances had been under a legal duty to save Chu, even if there was a contract that he should pay her $100 for the rescue, Chu will not have to pay her.
• E) All of the responses are correct.

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Definitions:

Contract Obligations

Responsibilities and duties that parties are legally bound to perform as per the terms of a contract.

Commercial Impracticability

A doctrine in contract law that excuses a party from fulfilling their contractual obligations due to unforeseen, extreme hardships.

Revoking Acceptance

The act of legally rejecting a product or service after initially accepting it, based on certain conditions being met.

Nonconforming Goods

Products or items delivered under a contract that do not meet the specifications, standards, or requirements agreed upon.