The 2019 catalog that Gigantic State University (GSU) sent to prospective students described a merit-based scholarship called the “Eagle Scholarship.” The catalog stated that GSU offers the Eagle Scholarship to all incoming students who are in the top 10 percent of their high school classes and have SAT scores of 1350 or above. Paul, a prospective student, read the 2019 catalog that GSU sent to him. Money was tight for Paul, so he paid particular attention to the part of the catalog that described financial aid. He read about the Eagle Scholarship and realized that he qualified for it. Paul picked GSU over other schools in large part because of the Eagle Scholarship. He applied to GSU and GSU admitted him. Before his freshman orientation, Paul called GSU and checked to be sure that he met the requirements of the Eagle Scholarship. A GSU representative informed him that he did. When Paul arrived at GSU for freshman orientation, however, he received a copy of the 2020 catalog and learned that the qualifications for the Eagle Scholarship had changed and that he no longer qualified.

1) Was there a contract between GSU and Paul for the Eagle Scholarship?

2) If so, what kind of contract was it?

3) What body of legal rules would apply to the contract?

4) If it wasn’t a contract, is there any other basis for a legal obligation on the part of GSU?

5) Would it be ethical for GSU not to honor its promise to Paul?