Alexander’s was a $20,000 winner. Alexander cashed the ticket and refused to give Pearsall anything. Can Pearsall recover half of the proceeds from Alexander? Explain.
Harold Pearsall and Joe Alexander were friends for more than twenty-five years. About twice a week, they would get together after work and proceed to a liquor store, where they would purchase what the two liked to refer as a “package”—a half-pint of vodka, orange juice, two cups, and two lottery tickets. Occasionally these lottery tickets would yield modest rewards of two or three dollars, which the pair would then “plow back” into the purchase of additional tickets. On December 16, Pearsall and Alexander visited the liquor store twice, buying their normal “package” on both occasions. For the first package, Pearsall went into the store alone, and when he returned to the car, he said to Alexander, in reference to the tickets, “Are you in on it?” Alexander said, “Yes.” When Pearsall asked him for his half of the purchase price, though, Alexander replied that he had no money. When they went to Alexander’s home, Alexander snatched the tickets from Pearsall’s hand and “scratched” them, only to find that they were both worthless. Later that same evening, Alexander returned to the liquor store and bought a second “package.” This time, Pearsall snatched the tickets from Alexander and said that he would “scratch” them. Instead, he gave one to Alexander, and each man scratched one of the tickets. Alexander’s was a $20,000 winner. Alexander cashed the ticket and refused to give Pearsall anything. Can Pearsall recover half of the proceeds from Alexander? Explain.
There exists an offer of acceptance and consideration between Individual P and Individual A. The agreement between the parties is a valid agreement. Not sharing the prize money is considered to be a breach of agreement. The agreement between the parties is enforceable, so the decision is going to be in the favor of Individual P.
Individual P has the right to claim the winning amount from Individual A. Individual P and Individual A entered into verbal agreement of jointly purchasing and sharing the prize money. Individual P inquired if Individual A is interested in buying another ticket and Individual A provided their consent. The consideration of the agreement is the sharing of the prize money into two equal halves.