Can Mrs. Smith's daughter sue her for the remaining $15,000 if she only received $15,000?

Prepare for the BPA Business Law and Ethics Test with engaging flashcards and multiple choice questions. Each question comes with explanations to enhance understanding. Succeed in your exam confidently!

The situation revolves around whether the daughter's claim to the remaining $15,000 can be substantiated legally. The correct answer indicates that the daughter cannot sue her mother for that remaining amount because it is regarded as a gift.

In legal terms, a gift is defined as a voluntary transfer of property without compensation or consideration. If Mrs. Smith intended to give her daughter the $30,000, but only delivered half of it, it may be interpreted that the other portion has not been established as a legal obligation. Since gifts do not create enforceable contracts, the daughter has no grounds to demand the remaining amount through legal action.

A promise of a gift typically does not equate to a legally binding agreement, especially if the transfer lacks the necessary formalities, such as a written contract or clear evidence of intent that would typically be required to enforce such an arrangement. This understanding of gifts as non-legally enforceable obligations is a fundamental aspect of contract law.

In contrast, other options hint at various forms of legal claims that would generally require a clear contractual relationship or consideration, neither of which seems to exist in this scenario. This is why those options are not appropriate given the context of Mrs. Smith’s intentions and the nature of the financial transaction.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy