What arguments may be made on behalf of the town both to


The town of Broomville, along with local arts and athletic groups, decided to erect a new community center for sports, music, and theatre. The total estimated cost was $18 000 000. In April, Jane Borkus, president and CEO of the largest local industry, Autotech, promised to match every dollar raised through other donors, up to $9 000 000. Both she and the delighted town mayor, Geoff Johns, made the announcement over the local television station and in a joint statement in the town’s newspaper. Borkus said the deadline would be 12 months. The following January, the campaign was proceeding extremely well: other donors had pledged $5 500 000 and Borkus presented a cheque for $4 000 000 as Autotech’s “down payment and pledge of goodwill.” Unfortunately, in March, Autotech lost its major contract to supply car parts to one of the big three auto manufacturers. Anticipating a large loss at year’s end, Borkus withdrew the pledge and asked for the return of the down payment. What arguments may be made on behalf of the town both to keep the money paid and to require Autotech to honour its commitment? What do you think the decision would be?

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