Asked by Shiva Kumar on Apr 27, 2024
Verified
Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated. She expects to know for sure how much she will receive within a week or so. If Edward agrees:
A) there is an illusory contract, because Darla is not certain she will receive the money.
B) there is no consideration present in this example.
C) the consideration from Darla to Edward is the promise of $6,000 subject to a condition.
D) this is an option contract and Edward must wait at least a week for Darla's answer.
Illusory Contract
An agreement that fails to bind one party due to vague or unenforceable terms, making it appear to be a contract only in illusion.
Probated
Referring to the legal process in which a will is reviewed to determine whether it is valid and authentic.
Option Contract
A contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price within a specified period.
- Acquire insight into the concept and essential parts of consideration in contracts.
Verified Answer
CR
CLAUDIA RISCOApr 30, 2024
Final Answer :
C
Explanation :
The consideration from Darla to Edward is the promise of $6,000, which is contingent upon a condition (receiving the money from her uncle's estate). This condition does not make the contract illusory or without consideration, as it is a valid conditional promise.
Learning Objectives
- Acquire insight into the concept and essential parts of consideration in contracts.