The Valley Area Anti-Smoking Foundation (VAAF) offered to pay any Valley Area resident $500 if he or she would refrain from smoking for one year. Chad, a Valley Area resident, decided to accept this offer. He quit smoking immediately and did not smoke for a whole year. When Chad contacted VAAF to inform it of his success and collect his $500, VAAF informed him that it was only able to pay $250 because so many Valley Area residents had taken advantage of its offer. Chad reluctantly agreed to accept $250 instead of $500.
Was VAAF contractually obligated to pay Chad for refraining from smoking?
Was there consideration to support its promise to pay $500?
Are there other facts you need to know to make that determination?
Is Chad entitled to receive the entire $500 or only $250?
Was VAAF ethically required to pay the entire $500?
