BUSINESS LAW QUESTION

Buddy and Peggy-Sue are friends. They agree that it would be fun and add spice to their otherwise tedious Saturday evenings if they jointly purchased lotto tickets for the Saturday night draw each week. Initially they purchased the ticket together, with either Buddy giving Peggy-Sue $5 each Friday so that she can purchase the $10 ticket or Peggy-Sue giving Buddy $5 so that he can purchase it. Over the last four weeks Buddy has purchased the ticket on his own and Peggy Sue has given him the $5 when they meet on Saturday evening or on the following Monday. Last Friday Buddy purchased the ticket for $10. Peggy-Sue did not meet up with Buddy on the Friday or the Saturday as she had to work but Buddy was not bothered as he knew Peggy-Sue would give him $5 when they next met. However, on Saturday evening Buddy is delighted to learn that the ticket he purchased on Friday has won $1,300,000. When Peggy-Sue meets Buddy on Sunday, and tries to give him the $5, Buddy refuses to accept the $5 saying that the ticket, and the prize money, is all his.

Required: Advise Peggy-Sue, with reasons supported by appropriate authority, whether she could successfully sue Buddy for a half share of the $1,300,000. ANSWER IN 4 STEPS: ISSUE, LEGAL PRINCIPLE+ AUTHORITY, APPLICATION, CONCLUSION, thanks will advance and will thump up