Can I force my niece to return the car I purchased her if she did not pass the exam as promised?

Full question:

I promised to buy my niece a car if she passes the bar exam. She was exultant over how easy the exam was and assured me that she passed so I brought her the car. When the results were announce, she did not pass. Now that I asked her to return the car, she refuses stating there is no contract binding her to return the car. What can I do?

• Category: Contracts
• Date: 04/07/2025
• State: Colorado

Answer:

The elements of a contract are: a) an agreement; b) between competent parties; c) based upon the genuine assent of the parties; d) supported by consideration; e) made for a lawful objective; and f) and in the form required by law. Without going into detail about each requirement, the only element arguably missing is consideration.

Consideration consists of something that the promisor is not otherwise entitled to. Consideration is the price paid for the promise. When thinking of consideration, one must think in terms of legal value as opposed to economic value. While economic value (e.g., money) is the most common form of consideration, consideration does not have to involve money. In order for a contract to be enforceable, each party to the contract must change his or her legal position in some way.

A promise can be consideration for a contract. However, before a promise can serve as consideration, it must be binding. It must impose a liability or create a duty that did not exist before the promise was made. You assumed a duty when you promised to buy the car if your niece passed the bar examination. She accepted your promise. You and she had an enforceable contract. Since she failed the exam, she did not fulfill the contract and has a legal obligation to return the car.

I wonder if she would have agreed that there was no contract if she had passed the exam and you had refused to buy the car for her.