Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 15

Ralston was injured when she fell down a church stairway. Matthew, agent for the company that insured the church, promised Ralston that the insurance company would pay her hospital and medical expenses if she did not sue the church. Ralston agreed, but the insurance company refused to pay her expenses, claiming that charitable and religious organizations in the state of Kansas were not liable for negligence. The company stated that Ralston had no valid claim and that her promise not to sue was not consideration. Did Ralston have a valid claim? (Ralston v. Matthew, 173 Kan. 550)