Failing to collect sponsorship money

[Mrs_Pegasus]

If someone collects sponsorship money and then fails to collect it in from the sponsors are they legally obliged to pay the money to the organisation? Interestingly, neither the company who organised the fundraising or the cause benefitting are registered charities, although the benefactoring organisation is more than worthy of the additional income.

[dzug]

I can't see how a sponsor (who may have been browbeaten into sponsoring anyway) can be forced to pay if he changes his mind. There is no consideration involved ( ie they are not being given anything in exchange for their money), therefore no contract.

So I don't see that the collector is obliged to pay either.

[Buenchico]

I generally agree with Dzug's answer i.e. any agreement for the sponsors to pay up or for the sponsored person to pursue the sponsorship money is probably binding in honour only (i.e. it there is no contract).

The only exception might be where the person who is sponsored gains in some way from the agreement to get sponsorship. For example, some charities offer people a 'free' parachute jump to people who guarantee to get a minimum amount of sponsorship. In such cases, it would be reasonable to assume that the person making the parachute jump had entered into a contract to make reasonable attempts to pursue payment of the money which was promised by the sponsors (including those amounts which would bring the total collected to above the minimum level). However, as long as reasonable attempts at collection were made, the sponsored person would not held liable for any non-payment by sponsors as long as the minimum amount was paid to the charity. (The sponsored person is usually obliged to sign a contract guaranteeing that, in return for the jump, he/she will guarantee the minimum amount). Even so, the sponsors would seem to be bound by nothing more than honour.

Chris