Asked by Victoria Konko on Jun 14, 2024
Verified
Bill is 25 years old.His uncle promised in writing to pay him $2,000 if Bill would refrain from drinking alcohol for one year.Bill refrained from drinking alcohol for one year.However,his uncle now refuses to pay Bill as they agreed.The uncle claims that because Bill suffered no detriment by refraining from alcohol,his non-drinking does not constitute legal consideration,and,therefore,no contract was formed.If Bill sues his uncle,Bill will:
A) win because Bill had a legal right to drink alcohol.
B) lose because consideration must have monetary value.
C) win because no consideration is needed in this contract.
D) lose because refraining from an action can never be considered legal consideration.
Legal Consideration
Something of value, which can be a promise, service, or object, exchanged between parties as part of a contract.
Refrain From Alcohol
An advisory or mandate to abstain from consuming alcoholic beverages.
- Acquire knowledge on the significance and position of consideration within the formation of a valid agreement.
- Understand the components that make up legal consideration and identify how they differ from inadequate or non-existent consideration.
Verified Answer
SQ
SyAza QashDinaJun 17, 2024
Final Answer :
A
Explanation :
If,in exchange for the promisor's promise,the promisee refrains from doing,or agrees not to do,something he/she has a legal right to do,that provides legal value.This definition does not require that an act or a promise have monetary value to amount to consideration.Bill refrained from drinking alcohol,even though he may have benefited from so refraining.He had a legal right to indulge in such activities,yet he refrained from doing so at his uncle's request and in exchange for his uncle's promise.This was all that was required for consideration.
Learning Objectives
- Acquire knowledge on the significance and position of consideration within the formation of a valid agreement.
- Understand the components that make up legal consideration and identify how they differ from inadequate or non-existent consideration.