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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 |
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3.2. Formal agreements |
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Read the facts and the question and then choose the best answer. A says to his friend B: "I promise to pay you $1,000 each month for the next twelve months. I have written this down on paper so that there can be no dispute." B replies to A: "That's very nice of you. I accept!" Is A's written undertaking sufficiently formal to be legally enforceable by B?
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(a) Yes, because if an agreement is put in writing, it is sufficiently formal to make it legally enforceable. (b) No, because putting an agreement in writing is not in itself sufficiently formal to make it legally enforceable. |
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