What constitutes a contract?

francohoops

Hi
My father agreed to contribute £75k to a purchase of my house. The deal is yet to go through. As part of the mortgage application the bank asked to see a letter signed by him agreeing to contribute £75k and also stating that this is a gift and he would have no future claim on the house. He agreed to this and signed a letter to state this.

Due to issues with my late mother's will, he is now threatening to not contribute the £75k which would mean we lose the house. He wants me to agree to accept less of my mother's estate in return for this money. It was clear from the start that this gift had no bearing on the will. I'm in a difficult position as I don't want to risk losing the house, but feel that my mother's will should be enforced as she wanted.

My question is this, is the letter that he signed and we presented to the bank a contract in the eyes of the law? In the eyes of the law could he be compelled to hand over the £75k irrespective of the outcome of the will?

Any advice would be greatly appreciated.

Thanks
F

ILW

francohoops wrote: »

Hi
My father agreed to contribute £75k to a purchase of my house. The deal is yet to go through. As part of the mortgage application the bank asked to see a letter signed by him agreeing to contribute £75k and also stating that this is a gift and he would have no future claim on the house. He agreed to this and signed a letter to state this.

Due to issues with my late mother's will, he is now threatening to not contribute the £75k which would mean we lose the house. He wants me to agree to accept less of my mother's estate in return for this money. It was clear from the start that this gift had no bearing on the will. I'm in a difficult position as I don't want to risk losing the house, but feel that my mother's will should be enforced as she wanted.

My question is this, is the letter that he signed and we presented to the bank a contract in the eyes of the law? In the eyes of the law could he be compelled to hand over the £75k irrespective of the outcome of the will?

Any advice would be greatly appreciated.

Thanks
F

Are you prepared to sue your own father for ofering to do you a favour?

dzug1

It's not a contract in my view. You are giving him nothing in exchange, and for there to be a contract there has to be 'consideration' - ie you have to 'give' or 'do' (or refrain from doing) something for him in exchange and that something has to be defined in the contract.

Now if it were rewritten to say that in exchange for receiving your £75K you give up part of your claim to your mother's estate then that would be a contract.

sp1987

You cannot compel somebody to give a gift. It was written in the letter that it was purely a gift and he received nothing (legal consideration) for it. His circumstances have now changed and so has his decision on giving such a gift. Had he given the money over and then changed his mind and demanded a share in the house, that is where your letter may be useful, to state that he had not purchased an interest in the house.

Do not agree to mess about with the will left by your mother, agreeing to ''take less'' than is written in the will is not an option until after distribution anyway. Take what you have been left and use that towards a house.

You seem to want to enforce something where your father has offered to give you something as a gift, pay for your own house.

francohoops

Thanks for the replies.
F

PROLIANT

If I say to you "I will buy that hat off you for a tenner" and you agree - we have a contract.

wynnvegas

This one tested the memory of 2nd year contract law back in the day!

Your situation would be enforceable in Scots contract law - the law of unilateral promise is enforceable up this way.