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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 able to pay only $250 because so many Valley Area residents had taken advantage of its offer. Chad reluctantly agreed to accept $250 instead of $500.
1. Was VAAF contractually obligated to pay Chad for refraining from smoking?
2. Was there consideration to support its promise to pay $500?
3. Are there other facts you need to know to make that determination?
4. Is Chad entitled to receive the entire $500 or only $250?
5. Was VAAF ethically required to pay the entire $500?
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