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First Principles of Business Law |
| Making a contract |
| 3. The second essential element of formation: Formal execution or exchange of consideration |
| 3.13. Promises to do something for a third party |
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Read the facts and the question and then choose the best answer. A says to B: "I know that you bought C's car and must pay her $5,000 at the end of the month. C owes me $5,000 and I need the money. I will pay you $100 if you promise me that you will pay C on time." B replies: "OK, for $100 I promise you that I will pay C what I owe her at the end of the month." Has B given A sufficient consideration to make A's promise to B legally enforceable?
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(b) No. B's promise to A to pay C is not sufficient consideration for A's promise to B. (a) Yes. B's promise to A to pay C is sufficient consideration for A's promise to B. |
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