Question

Franklin hires Angela to paint his portrait. She is to be paid $50,000 if the painting is acceptable "in Franklin's sole judgment." At the big unveiling, 99 of 100 attendees think that Angela has done a masterful job. Franklin disagrees. He thinks the painting makes him look like a toad. Franklin refuses to pay, and Angela sues Franklin. Who wins and why?

Answer 1

Answer: Angela loses because she had entered into a 'personal satisfaction contract' with Franklin which clearly mentioned the clause which said that Angela would be paid only if the painting is acceptable in Franklin's sole judgment.

Explanation: A personal satisfaction contract legalizes the right of the receiving party of not paying the giving party on the grounds of dissatisfaction over the work or service dispensed by the latter. In the given case, Angela had agreed to the clause which mentioned that she would only be paid if her work satisfies Franklin's expectation from her work. On the grounds of dissatisfaction, Franklin rejects to pay her and she also loses the lawsuit filed against Franklin.