contract-law
Can someone back out from an agreement to pay someone else money if they fail to achieve a goal?
<p>A scenario similar to this has undoubtably been considered before but I haven't come across anything that is in the same vein. In any case, would this example be a specific type of contract/agreement and would it be legally enforceable.</p>
<p>Agreement:  Person A is determined to stop smoking in six months time.  Person A and Person B make an agreement whereby Person A shall deposit into an escrow account $10,000; if at the end of six months Person A has successfully stopped smoking then the agreement stipulates all the money is returned to him.  If he fails in his goal and is still smoking after six months, then Person A has instructed that Person B shall be entitled to claim the $10,000 and spend however he wishes; it is intended to serve as an incentive and to discourage failure in achieving the goal.</p>
<p>What would a court say to Person A if - after 3 months he decided he was no longer interested to stop smoking and wanted his money back?</p>

<p><a href="/questions/tagged/common-law" class="post-tag" title="show questions tagged &#39;common-law&#39;" rel="tag">common-law</a></p>
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<p>What would a court say to Person A if - after 3 months he decided he was no longer interested to stop smoking and wanted his money back?</p>
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<p>For simplicity, let's take the contract between the escrow service and A/B out of the equation.</p>
<p>There is no contract between A and B because there is <strong>no consideration moving from B</strong>. B parts with nothing for their chance to get $10,000.</p>
<p>So, if A takes the case to the court after 3 months they will get their money back (again, not considering troubles with escrow). B will have no legal entitlement whatsoever.</p>

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<p>Can someone back out from a bet like this?</p>
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<p>The issue of whether a contract exists at all depends on the jurisdiction (see <a href="https://law.stackexchange.com/questions/58792/can-someone-back-out-from-a-bet-like-this/58794?noredirect=1#comment120820_58794">phoog's comment</a>). The <a href="https://law.stackexchange.com/questions/58792/can-someone-back-out-from-a-bet-like-this#comment120813_58792">example</a> @Sneftel provided is inapplicable because that one actually entails a consideration provided by the counterparty: &quot;<em>tools to assist you in achieving your goal</em>&quot;.</p>
<p>Only in some scenarios the matter could be enforceable under a theory of <em>promissory estoppel</em>, the elements of which are listed in <a href="https://www.leagle.com/decision/200592228calrptr3d8941846" rel="nofollow noreferrer"><em>US Ecology, Inc. v. State</em>, 28 Cal.Rptr.3d 894, 904 (2005)</a>. Element 4 (injury resulting from <em>B</em>'s reliance on <em>A</em>'s commitment) seems most difficult for <em>B</em> to prove because your description nowhere reflects <em>B</em> that has a <em>cognizable</em> interest.</p>

<p>This would probably get down to the specific terms agreed with the escrow account, but from a layman perspective of the terms, <em>person A loses the money</em>.</p>
<p><em>Changing your mind</em> is not a different category. In fact, as soon as A lighted the first cigarette (and/or was caught, maybe), surely he would change his mind and want to get out of the bet.</p>
<p>The proper procedure if person A decides after 3 months that he was no is no longer interested to stop smoking and also wants his money back would be to stay out of tobacco for another 3 months, and resume smoking 6 months and 1 day after making the bet. (Although I guess he might change his mind several times more in the meantime)</p>
<p>Also interesting, this could be presented as an agreement whereby person A gives the money to person B after 6 months, or as a gift of the money to person B that will have to pay that back to A as a reward after 6 months, with probably different consequences.</p>
