Asked by Bailey Rayoum on May 28, 2024
Verified
Mr.Green is a local mobster who makes Mr.Blue pay $100 not to have his business burned to the ground.What is the status of the contract between Mr.Green and Mr.Blue?
A) There is no contract because Mr.Green gave inadequate consideration
B) There is a contract as long as Mr.Green registers the contract with the Secretary of State
C) There is a contract as long as $100 is a reasonable profit for not burning down the business
D) There is a contract as long as a court reviews the terms within 30 days
Inadequate Consideration
This term implies an agreement in which the value exchanged between two parties is significantly disproportionate, questioning the fairness of the deal.
- Determine what characterizes lawful consideration and contrast this with what is considered insufficient or lacking consideration.
Verified Answer
CR
Chandan RupanaMay 30, 2024
Final Answer :
A
Explanation :
Every member of society has a duty to obey the law and refrain from committing crimes or torts.Therefore,a promisee's promise not to commit such an act can never be consideration.Not burning down a business is a duty Mr.Green would have despite the contract.
Learning Objectives
- Determine what characterizes lawful consideration and contrast this with what is considered insufficient or lacking consideration.