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Chapter 31 Additional Exercises Exercise 31-93 Ellsworth Agreement You worked on a version of this exercise in Exercise 15-1. Now that you've learned about ambiguity and structuring a provision, it is time to work with the full provi- sion- clarify its ambiguities and organize it to make sense conceptually. On December 15, 20XX, Bertha Ellsworth (Ellsworth) was admitted to the Home for the Aged (the Home) and signed an agreement stating 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 afterwards she would become a life member. On the same day, Ellsworth paid $100,000 to the Home by a check that stated: "In Payment of Life Membership for Bertha Ellsworth in the Home, as speci- fied in the Agreement dated December 15, 20XX." Ellsworth died on December 29, 20XX, before her probationary period ended. The administrator of the estate wants to recover the $100,000 gift as Ellsworth never became a life member. The Home claims it is entitled to keep the money. The agreement is ambiguous. Assume that you represented Ellsworth when the contract was negotiated. How would you have drafted the following provisions to protect her? The lines of the provisions are numbered to facilitate class discussion. The provi- sions are available on the book's website. 1.1 Ellsworth having this day given the Home, without reservation, the sum of $100,000 to be used and OF A WN - 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 6 period of her natural life. 1.5 It is clearly understood that Ellsworth has been 8 received in accordance with the new regulations on a probation period of two months in which time she has the 10 opportunity of finding out whether she desires to remain in 11 the Home. If it should be found advisable to discontinue her 12 stay in the Home, then her gift, with the exception of $2,000 13 per month shall be refunded. 14 12.1 Probationary membership means a short trial 15 period while the member becomes adjusted to life at the 16 Home. The probationary membership shall not continue for 17 a longer period than two consecutive months. If for any 18 reason the trial member does not desire to remain in the 19 Home, she shall have the privilege of leaving. Only 20 members who do not have the money to pay for their life 21 Membership shall be granted the privilege of paying by the 22 month