Asked by Bobby Ramoz on May 08, 2024
Verified
With regard only to the requirement of consideration, which one of the following would be a binding contract?
A) A promise by Tom to drive a co-worker to Timmins, Ontario
B) A promise to give $10 in exchange for a promise to give a can of pop
C) A promise by Mr. Brent to pay $25 to John, who found and returned Brent's wallet, which Brent didn't even know he had lost until John delivered it
D) An agreement between a contractor and a homeowner that the owner would pay an additional $1000 if the contractor would complete the existing contract according to all its terms
E) A written promise, but not under seal, to give John $50 on Saturday
Consideration
The value (such as money, service, or goods) promised to another when making a contract.
Binding Contract
A legally enforceable agreement between two or more parties that is binding in a court of law.
Co-Worker
An individual who works with another in the same organization or on the same project, but not necessarily having the same rank.
- Scrutinize how consideration is applied in contract law.
Verified Answer
SS
samantha smileyMay 10, 2024
Final Answer :
B
Explanation :
Option B involves a mutual exchange of promises where each party is offering something of value ($10 and a can of pop), which satisfies the requirement of consideration for a binding contract.
Learning Objectives
- Scrutinize how consideration is applied in contract law.