Naomi Nomes, a transactional lawyer, moved into the Chicago area with her family in February 2020.  She has a twelve year old son, Manny, who she managed to enroll in a local private school called the High Stakes Academy.  The enrollment is for the academic year beginning in fall 2020.  Since she tends to move around a lot because of her work, she asked the school principal whether it would be a problem if she had to pull out her son at short notice before the end of the year.  He said it should not be a problem.  The Principal tried to reassure her: "We have a long waiting list of kids wanting to enroll in our school and if you have to pull out Manny out of school we can always find another child to replace him."

On March 1, Naomi and the High Stakes Academy signed an enrollment commitment agreement on behalf of Manny for the fall of 2020.  The enrollment agreement specified that the full amount of tuition will be $34,000 for the academic year starting in September 2020.  The agreement also provided in relevant part:  "No tuition would be refunded if a student withdraws at any time after March 5, 2020.  The undersigned parent agrees to pay the tuition of $34,000 for the full contracted year on March 5, 2020."

Naomi paid the full amount of tuition of $34,000 to High Stakes Academy on March 5, 2020.  On the morning of March 8, Naomi received notice from her work that they needed her to transfer to their Houston office effective March 28, 2020.  Later on the afternoon of March 8, Naomi contacted the Principal of the High Stakes Academy and mentioned that she needed to withdraw Manny right away.  On March 9, she received the following email response from the Principal of the High Stakes Academy: 

Thanks so much for promptly notifying us of the withdrawal of your son, Manny, from the High Stakes Academy for the 2020/2021 academic year.  Since we have a long waiting list of students waiting to enroll, we expect to be able to find a replacement.  Nonetheless, per our agreement, the amount of $34,000 you have paid us for tuition next year is non-refundable, and thus we not be able to return any of that amount to you.  We wish you and your family the best of luck in your future endeavors.   

Assume you are an associate representing Naomi, what will you advise her to do?   

Assume that you are an associate representing High Stakes Academy, what will you advise them to do? 

Answer rating: 100% (QA)

As an associate representing Naomi Nomes Naomi should first carefully review the enrollment commitment agreement she signed with the High Stakes Acade... View the full answer