|
First Principles of Business Law |
| Making a contract |
| 3. The second essential element of formation: Formal execution or exchange of consideration |
| 3.6. The adequacy of consideration |
|
Read the facts and the question and then choose the best answer. A, a builder, says to B: "If you pay me $100, I will build the warehouse you want on your industrial site." B, a retailer, replies to A: "I'll happily pay you $100 to build the warehouse." The agreement is not in writing. Considering that B has only promised to pay a small amount, is there a sufficient consideration for the agreement to be legally enforceable? |
|
(a) Yes, the consideration given does not have to be equal in value to the consideration received. (b) No, the consideration given must be equal in value to the consideration received. |
|
|
|