Contract Law Chapter 8

Case 3

Douglas Dixie and Millie Grace, both aged 43, have known each other since high school. Their adult lives, however, followed very different paths. After earning a college business degree, Douglas established a pet supply company. The company now operates several dozen stores across Canada and earns large profits. Douglas has amassed a fortune. Millie, in contrast, never earned a higher degree and has bounced from one low-paying job to another. The pair recently became reacquainted during their high school classs 25-year reunion. Millie described her sad situation to Douglas and, after learning that he was worth millions, asked if he would give her enough money to open a small bakery, which she had always dreamed of owning and operating. Douglas explained that he had no interest in that sort of business and said that he was not in the habit of simply giving money away. Millie nevertheless kept asking and, before the evening was done, Douglas promised that he would give her $100,000 within a month. The next day, Douglas received a document from Millie. The document contained Millies seal and it said, I, Millie Grace, hereby acknowledge that I will receive $100,000 from Douglas Dixie within one month. It is now two months later. Douglas refuses to pay any money to Millie, but she insists that he is legally obligated to do so. She is especially eager to receive the money because, in reliance upon Douglass promise, she has already entered into a contract with another company to buy bakery supplies and equipment.

Question:

Is there any basis upon which Millie can force Douglas to fulfil his promise? Explain your answer.