Eleanor is 91 years old. She lives in her home and relies on a neighbor who checks on her every day. The neighbor provides companionship and food and helps with chores around the house. The neighbor tells Eleanor that if she doesn’t find a way to make some money, she will have to get a job, and then won’t have time to visit with and care for Eleanor, and Eleanor will have to pay someone else to do what she does now for free. Eleanor enjoys the neighbor’s company, and says she can try to pay her something to come by, because she relies on her visits. The neighbor tells Eleanor that she would like to have some of Eleanor’s jewelry, so that she can resell it for a profit. Eleanor explains that her items of jewelry are family heirlooms that she doesn’t want to sell, and that

Question

they are the only valuable things she owns. Neighbor takes some of Eleanor’s jewelry during a visit, sells it and keeps the money. Eleanor subsequently seeks return of the items, but the neighbor claims that they had a contract that she could have the jewelry to compensate her for caring for Eleanor. What defenses can Eleanor assert that there is no enforceable contract? Explain fully.

What will be an ideal response?

Answer 1

Eleanor has several defenses to the formation of a valid contract. The first would be that there is no agreement because Eleanor never accepted the terms of the offer to give the neighbor jewelry in exchange for services. Secondly, even if she did agree, Eleanor can argue that neighbor gave no new consideration for the promise to give her jewelry. She had already provided the services prior to the agreement. Eleanor can also argue that any acceptance was not voluntarily given but given because of neighbor’s undue influence. Although not in an official fiduciary relationship, neighbor was in a confidential position in which she exercised domination and control over the other party. Undue Influence is experienced where the party that has a relationship of trust and confidence with another party breaches that trust by influencing the innocent party into entering a contract that is an unfair bargain.