Asked by Yokasta C. Estrella Lucas on Apr 26, 2024
Verified
Apps Inc. promises to give stock options to Belden, a creative coder, for processes he has already designed. This promise is
A) enforceable because it is a new contract.
B) enforceable because it is an illusory promise.
C) enforceable because it is supported by past consideration.
D) unenforceable.
Past Consideration
A concept in contract law that refers to an act or benefit given prior to the promise being made, which therefore does not constitute valid consideration for a contract.
Stock Options
Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific period.
- Understand the principle of consideration and its prerequisites for a legitimate contract.
Verified Answer
LR
LoAnnie RodriguezApr 27, 2024
Final Answer :
D
Explanation :
This promise is unenforceable because it is based on past consideration. In contract law, for a promise to be enforceable, there must be consideration, which is something of value exchanged between the parties. Past consideration refers to something that has already been done or provided before the promise is made, and it does not constitute valid consideration for a new contract.
Learning Objectives
- Understand the principle of consideration and its prerequisites for a legitimate contract.