Question

Frank, a hypochondriac who was also very compulsive, was having minor surgery to repair a bone spur on his foot. He had just purchased a lottery ticket for a chance at the grand prize of $30,000,000. Frank's girlfriend, Bubbles, went with him to the hospital. While in the waiting room, Frank said to her, "Bubbles, I may not make it out of this bone spur surgery. Take my lottery ticket. If I don't make it, I hope you win and live it up, but please don't get another boyfriend." Bubbles replied, "I could never be happy without you."
A nurse saw and heard the whole exchange. Frank came out of the surgery just fine but with a sore foot. While he was recuperating, that evening, Bubbles watched the lottery drawing and discovered that Frank's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Frank saw her on television with her new boyfriend, George. She appeared to be very happy. He checked the numbers and discovered that she won with his ticket. Frank says that the lottery money is his.

Which of the following is true regarding rightful ownership of the lottery money?

A. At that point, he made a valid gift that could not be revoked.
B. He did not make a gift because he placed a condition on it.
C. He made an irrevocable gift at that time only if Bubbles never had another boyfriend; otherwise, she had to give the ticket and any resulting cash to Frank.
D. He made an irrevocable gift at that time if Bubbles refrained from having another boyfriend until she cashed the ticket; and, after the ticket was converted, the condition no longer applied.
E. None of these.

Answer 1

Answer:

C. He made an irrevocable gift at that time only if Bubbles never had another boyfriend; otherwise, she had to give the ticket and any resulting cash to Frank.

Explanation:

The three elements that make a gift are the capacity of a donor, the intent to transfer the property as a gift and the delivery of the gift. From these we can deduce that Franks actions towards Bubbles consists of the elements that make a gift.

However, a gift can be termed irrevocable if the term the donee (Bubbles) fails to adhere to the conditions laid by the donor (Frank) at the time of drawing up the gift deed. Frank has specified his condition from the outset that Bubbles should never have another boyfirend and that she can take the lottery win in the event he dies. However, Bubbles failed to maintain these conditions and therefore has to return the ticket and any resulting cash to Frank.

Answer 2

Answer: The answer is E. None of these.

Explanation: From the scenario given above, we can see that Frank was a hypochondriac meaning that he always worried about his health, and in addition to that, he was also compulsive.

When Frank was in the hospital, his hypochondriacal nature must have prompted him to give the lottery ticket to Bubbles. This is because he must have thought he was going to die.

A gift that is given in this situation is called a Gift Causa Mortis. The condition for this gift to be irrevocable is if the donor dies. However, if the donor survives, then the right to keep the gift will only be passed to the receiver if the donor permits it.

Therefore, the gift to Bubbles in the scenario given above is revocable based on whether Frank dies or not, and since Frank is alive, the lottery ticket is still validly his.

Therefore the answer is E.