Asked by George Greer on Jul 27, 2024

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In Welsh v.Lithia Vaudm,Inc. ,the case in the text,the court held that:

A) written agreements,such as an invoice,are presumed to be supported by consideration.
B) there was adequate consideration,making the arbitration clause enforceable.
C) no additional consideration existed where Lithia had a preexisting duty under the oral contract.
D) Lithia's modification was a pre-performance,bilateral demand.

Adequate Consideration

A fair and reasonable value exchanged in a contract, ensuring that all parties receive something of value.

Arbitration Clause

A provision in a contract that requires the parties to resolve disputes through arbitration rather than through litigation in court.

Preexisting Duty

An obligation that a party is already legally bound to, which cannot serve as consideration for a new contract.

  • Analyze the role of nominal consideration in contracts and its impact on the enforceability of agreements.
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JP
Jinal PatelAug 03, 2024
Final Answer :
C
Explanation :
The court held that no additional consideration was given when the invoice was signed and Lithia had a preexisting duty under the oral contract.Therefore,the arbitration clause was not included in the agreement.