Can Rebecca claim the unpaid stipend under contract law? Please explain answer citing relevant legal basis

Question - Rebecca is 19 years old and has just graduated with a bachelor's in communications degree from a well-known university. Even though she has not worked in a communications job before and has no experience in a communications role, she decides to apply as a part-time graduate assistant for Whisker House, which is a charity dedicated to finding homes for stray cats. The foundation agrees to pay Rebecca a stipend of $1,500 a month, in view of her junior role and her lack of relevant job experience. Even though the stipend is quite low, Rebecca decides to accept the job offer because she wants to get experience in her chosen field.

After a few months, some of the foundation's major contributors do not give their normal contributions. Consequently, the foundation does not receive the expected amount of funding for the coming financial year. Rebecca's supervisor tells her that her role has been dissolved and her services are no longer needed. The foundation has not paid her stipend for two months. When Rebecca asks for payment, the foundation says they do not owe her any money because she was not an employee. They were only giving her work experience. Besides, they didn't sign a written contract, Whisker House is a charity, and under the law, foundations are not expected to pay salaries if there are no available funds for this purpose.

Can Rebecca claim the unpaid stipend under contract law? Please explain your answer citing appropriate and relevant legal basis.

Answer -

Yes Rebecca can claim the unpaid stipend. As per the contract law, a contract is defined as an agreement made between parties where a promise has been made and there is legal intention to fulfil the promise made. In Rebecca's case the agreement she made with the foundation can be regarded to be a contract as a promise had been made which is to pay her $1,500 per month and there is a legal intention where an agreement has been reached and consideration exchanged between the parties which makes the contract to be legally binding.

There are various elements that need to be attained for an agreement to be regarded as a contact and these elements include, understanding, intention, agreement and consideration. In Rebecca's case all these elements are present. Regarding understanding, both Rebecca and the foundation understood what the contract entailed as they had the capacity, they all concentrated to entering into the agreement, the bidding was also legal. Agreement made can also be in writing or oral. Regarding intention, the foundation was to receive services from Rebecca while Rebecca was to receive the $1,500 payments per month in exchange for her services to work for the company.

Regarding agreement, an offer was an offer was made where Rebecca was to offer her services while there was acceptance where the foundation agreed to receiving services. Regarding consideration, there was a promisor that is the foundation while Rebecca was the promisee as she was to receive payments. With the agreement between Rebecca and the foundation meeting the four elements that is understanding, intention, agreement and consideration, Rebecca should receive her unpaid stipend as the contract was legal and valid.

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