Instructions
This assignment is to be completed individually. Please ensure your assignment has your name both in the document itself and in the name of the assignment when submitted.
Read the prompt on the next page and answer the following questions.
- What is the primary source of ambiguity?
- Determine and identify which lines deal with which topics. For example, lines 1-4 cover donation.
- Answer what should happen to the gift in each of the following scenarios (1) from the Home’s perspective, and (2) from Ellsworth’s perspective.
- Ellsworth departs during the probationary period.
- Ellsworth departs after the probationary period.
- Ellsworth dies during the probationary period.
- Ellsworth dies after the probationary period.
- Assuming that you had been the attorney for the Home when the contract was being negotiated, how would you have marked up the following provisions to protect your client? This should be done as a redline (in Word or equivalent program) to the agreement provided.
Prompt
On December 15, 20XX, Bertha Ellsworth (“Ellsworth”) was admitted to the Home for the Aged (the “Home”) and signed an agreement setting forth the terms of her stay at the Home. The agreement provided that for the first two months of her stay she would be a probationary member and that thereafter she would become a life member. On the same day, Ellsworth paid $100,000 to the Home by a check which stated: “In Payment of Life Membership for Bertha Ellsworth in the Home, as specified in the Agreement dated December 15, 20XX.”
Ellsworth died on December 29, 20XX, before her probationary period expired. The administrator of her estate seeks to recover the $100,000 gift since she never attained a life membership. The Home claims it is entitled to keep the money.
Agreement
1.1. Ellsworth having this day given the Home,
without reservation, the sum of $100,000 to be used and
disposed of in the furtherance of its benevolence and
charitable work as it may deem best, the Home admits
Ellsworth into the Home as a member thereof during the
period of her natural life.
1.5. It is clearly understood that Ellsworth has been received in accordance with the new regulations on a
probation period of two months in which time she has the opportunity of finding out whether she desires to remain in
the Home. If it should be found advisable to discontinue her
stay in the Home, then her gift, with the exception of $2,000
per month shall be refunded.
12.1 Probationary membership means a short trial
period while the member becomes adjusted to life at the
Home. The probationary membership shall not continue for
a longer period than two consecutive months. If for any
reason the trial member does not desire to remain in the
Home, she shall have the privilege of leaving. Only
members who do not have the money to pay for their life Membership shall be granted the privilege of paying by the
month.
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