Ken, a research chemist, has been promised a fellowship with a stipend of $10,00

Question

Ken, a research chemist, has been promised a fellowship with a stipend of $10,000 to do research on synthetic fuel oil. Under the terms of the fellowship, Ken is free to use the money as he sees fit. Ken decides to build his own laboratory, so he will not have to rent one. He hires a carpenter who begins working on shelving and cabinets in the laboratory. Then Ken receives a telegram saying the fellowship has been canceled. No reason is given for the cancellation. If Ken sues, will he be able to collect the money from the foundation which promised the fellowship? Explain your answer using legal analysis.

Explanation / Answer

Few points to consider before deciding if Ken is eligible to sue the organization:

1. Is the promise a written one?

2. Does the terms and conditions specify that the organization can cancel the contract without any notice or reason?

If not, then there was no consideration for fellowship and can be revoked by the organization. But Ken has relied on the promise by the organization and under the doctrine of promissory estoppel, the court can revoke the decision of the organization to revoke fellowship.

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