Paul Pledge is a wealthy entertainer and avid basketball fan.Paul's favourite basketball team, the Toronto Dunkers, had an excellent season last year and won the overall NBA Championships.One Dunkers' player in particular, named Nigel Nimble, contributed significantly to the team's success last year through his outstanding performance in the play-offs; however, Nigel is now considering moving to another team that will pay him more money than the Dunkers can afford, unless the Dunkers can do something to recognize Nigel's contribution to the team's success in a meaningful and lasting way.A charitable organization called the Dunkers Foundation has been established and

announced last week that it has been raising money to build a new basketball stadium in downtown Toronto, which will be named the "Nigel Nimble Stadium" in hopes of enticing Nigel to remain with the Dunkers for the next few seasons.When Paul heard this announcement, he was so excited that he decided to contribute $40,000 in support of the project and signed a pledge card which read:"I, Paul Pledge, hereby agree to pay to the Dunkers Foundation the sum of $40,000 to assist with the cost of building the Nigel Nimble Stadium."The local press then published an interview with the President of the Dunkers Foundation, who publicly thanked Paul for his pledge and stated that the Foundation intended to place a bronze plaque acknowledging Paul's generous pledge in the foyer of the new stadium when it was complete.The Foundation President also publicly indicated that Nigel Nimble was very pleased with the new stadium announcement and that negotiations to renew Nigel's player-contract with the Dunkers were going very well.Yesterday, however, Paul's grandson (who lives in the U.S.) was involved in a serious biking accident.Paul's grandson now requires expensive medical treatment and Paul has offered to contribute the $40,000 previously "earmarked" for the Dunkers Foundation toward the cost of his grandson's medical treatment.The Dunkers Foundation now wants to know if they can compel Paul to honour his pledge.

(a)What would you advise the Dunkers Foundation?Please explain your advice.

(b)What potential defences would be available to Paul?

(c)What is the likely outcome of this case?