Skip to content
Official Blog of the AALS Section on Contracts

Contractual Promise to Assist with Hobnobbing

In California (where else?), a state court judge has, for now, refused to dismiss a fraud claim against Mark Zuckerberg of Facebook fame.  A breach of contract claim is also still under consideration.

What is the latter all about?  As we wrote here earlier, one of Zuckerberg’s former neighbors alleges that he promised to sell property adjoining Zuckerberg’s at a discount in return for Zuckerberg’s promise to provide the neighbor with “personal referrals and business promotion activities.”  The property changed hands, but Zuckerberg allegedly failed to make good on his promises.

Is he contractually bound to do so?  I don’t see why not.  The promise is not illusory, and although it is not directly monetary in nature, it does seem to constitute true consideration (Zuckerberg would give up time and effort to get the discount and run the risk of inconveniencing his connections).  

Of course, promises such as these are probably very hard to enforce via court action.  What would a court realistically do? Force Zuckerberg to help the former neighbor hobnob now that the parties undoubtedly dislike each other intensely?  Require him to host a certain number of cocktail parties and invite the ex-neigbor?  Such relief is unrealistic, just as it would likely be next to impossible to monetize the alleged loss here. 

The temptation to contract in part in return for return benefits from the rich and famous is continually present now as it has been for decades, if not centuries.  But numerous cases show how such deals are next to impossible to enforce, contracts law principles or not.  A higher sales price would undoubtedly have been smarter here.   

Making the case even weirder, the neighbor’s attorney has petitioned the court to withdraw from the case for ethical reasons.