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:

Condition Precedent

A condition in a contract that must be met before a party's obligation becomes due.

Certified Cheque

A check for which the bank guarantees the availability of funds by verifying and setting aside the desired amount.

Deposit Monies

Funds placed into an account or given to another party as a security for the performance of a contract.

Account Management

The ongoing process of managing the relationship between a business and its clients to maximize long-term satisfaction and value.