Jake Had Grown Tired of Working on the Family Farm

question 22

Multiple Choice

Jake had grown tired of working on the family farm and was considering moving away. However, his parents told him, "If you'll stay and help us, we'll leave you the farm when we die." As a result, Jake decided to stay on the farm and worked there for the next twenty years. However, when his parents finally died, Jake learned that they had left the farm to his brother, Nathan. Jake filed suit against his parents' estate to enforce their promise of leaving him the farm. Which of the following would be true of this scenario?

• A) Nathan and the parents' estate should be allowed to defeat Jake's claim to the farm by arguing that the parents' promise was enforceable because Jake gave consideration for the promise.
• B) The work that Jake did on the farm before his parents made their promise is sufficient consideration to make their promise enforceable.
• C) Jake's parents' promise is not enforceable because it was illusory.
• D) Jake's parents' promise would be enforceable under the doctrine of promissory estoppel.

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Definitions:

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing wear and tear, decay, or decline in value.

Contribution Margin

The portion of sales revenue that exceeds variable costs, contributing towards covering fixed costs and generating profit.

Variable Cost

Costs that change in proportion with the level of output or activity, such as raw materials and labor costs.