I think there are some grantee situations in which your car metaphor generally makes sense. But I think there are others that look more like this:
Thief steals $3000. Thief gets in a car crash. Thief takes car to Innocent Mechanic, who spends significant time and resources repairing the car pursuant to a contract with Thief (without knowledge the money was stolen). Thief pays Innocent Mechanic with the $3000 and picks up the car. Thief is caught, has a heart attack (crashing the car which is now worthless), and dies without a penny to his name. Innocent Victim comes in and demands the $3000 back. Innocent Mechanic asserts the right to be compensated for the work he has performed in good faith and without knowledge his fee was stolen.
Either Innocent Mechanic or Innocent Victim is going to get unfairly screwed here. Assuming he is actually innocent, I think it is OK for Innocent Mechanic to keep the money. Although I feel bad for Innocent Victim, it’s necessary for the smooth functioning of society that workers are confident they will be able to keep fair wages for the work they performed. That’s why mechanics’ liens exist, for instance, and why unpaid wages get priority treatment in bankruptcy. So if you (1) told me this story, (2) told me there was a 1⁄10 chance I was Innocent Mechnic, a 1⁄10 chance I was Innocent Victim, and a 8⁄10 chance I was random member of society, and (3) made me decide who should suffer the loss—I would have said Innocent Victim. That has nothing to do with what I think of the merits of the grants at issue here.
Just saw your clarification—I don’t think it matters that there was no economic benefit to the grantor; the detriment to the grantee is sufficient to establish the grantee’s legitimate interest in retaining the money (to the extent of that detriment). Charities serve important social functions. While I do not generally think charities should get privileged status compared to other transferees, I generally don’t think they should get inferior status either. Hence my inclination to treat them like other vendors here.
I think there are some grantee situations in which your car metaphor generally makes sense. But I think there are others that look more like this:
Thief steals $3000. Thief gets in a car crash. Thief takes car to Innocent Mechanic, who spends significant time and resources repairing the car pursuant to a contract with Thief (without knowledge the money was stolen). Thief pays Innocent Mechanic with the $3000 and picks up the car. Thief is caught, has a heart attack (crashing the car which is now worthless), and dies without a penny to his name. Innocent Victim comes in and demands the $3000 back. Innocent Mechanic asserts the right to be compensated for the work he has performed in good faith and without knowledge his fee was stolen.
Either Innocent Mechanic or Innocent Victim is going to get unfairly screwed here. Assuming he is actually innocent, I think it is OK for Innocent Mechanic to keep the money. Although I feel bad for Innocent Victim, it’s necessary for the smooth functioning of society that workers are confident they will be able to keep fair wages for the work they performed. That’s why mechanics’ liens exist, for instance, and why unpaid wages get priority treatment in bankruptcy. So if you (1) told me this story, (2) told me there was a 1⁄10 chance I was Innocent Mechnic, a 1⁄10 chance I was Innocent Victim, and a 8⁄10 chance I was random member of society, and (3) made me decide who should suffer the loss—I would have said Innocent Victim. That has nothing to do with what I think of the merits of the grants at issue here.
Just saw your clarification—I don’t think it matters that there was no economic benefit to the grantor; the detriment to the grantee is sufficient to establish the grantee’s legitimate interest in retaining the money (to the extent of that detriment). Charities serve important social functions. While I do not generally think charities should get privileged status compared to other transferees, I generally don’t think they should get inferior status either. Hence my inclination to treat them like other vendors here.