Facts: When John Blackwell was seriously injured, he and his wife Ki Tae Lee hired Se Ill

Question:

Facts: When John Blackwell was seriously injured, he and his wife Ki Tae Lee hired Se Ill Choi to help Lee communicate with her husband’s doctors and perform daily chores. Eventually, Choi moved into the Blackwell home and did everything for them from preparing the family’s income tax returns to attending parent-teacher conferences for the couple’s son. Choi described himself as the Blackwells’s “lifeline.”

The Blackwells did not pay Choi a salary, but they provided him with room and board, a computer and cell phone, health insurance, and a car. On many occasions, they vowed to support him financially for the rest of his life and promised that he would always “be taken care of.” 

After 13 years of service, Lee fired Choi suddenly. When Choi demanded immediate payment on the verbal promise of lifetime support, the two drafted and signed the following agreement: 

WHEREAS, BLACKWELL desire to express in writing their agreement [sic] to pay CHOI minimum of $450,000 immediately {sic] for the work CHOI has done for Blackwell. Now with this payment all previous agreements are null and void between two parties. CHOI is willing to provide service in the future if acceptable working condition is provided. 

But the relationship between Lee and Choi only got worse. When Choi sued the Blackwells for breach of contract, a jury awarded him $450,000 plus attorney’s fees. The Blackwells appealed, arguing that the agreement was void because it lacked consideration


Questions:

1. Was there consideration for Lee and Choi’s agreement?

2. What is past consideration?

3. What constituted past consideration in this case?

4. What did the Court of Appeals say about the repeated oral promises to provide Choi with “lifetime support”?

5. Choi argued that the fact that he gave up his right to any other lawsuits or any prior action was consideration for the promise of lifetime support. Did the court agree?

6. What did the court rule was “a matter of law”?

7. If the court ruled that there was no consideration “as a matter of law,” why did this case go to trial?

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Business Law and the Legal Environment

ISBN: 978-1337736954

8th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril

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