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First Principles of Business Law
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| Quiz: Making a contract |
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Question 10
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A promises B that B can live in A’s apartment for a year without paying any rental. In return, B promises to repaint the inside of the apartment at the end of the year. In the light of these facts, which one of the following answers is correct?
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(a) The monetary value of B’s promise to repaint the inside of the apartment is too small, in relation to the value of a year’s rent-free accommodation, to be valid as consideration.
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(b) B is only required to repaint the inside of the apartment at the end of the year, after he has already enjoyed a year’s rent-free accommodation. This means that B has not provided any consideration at the time the agreement with A was made.
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(c) Although B is only required to repaint the inside of the apartment at the end of the year, and although the monetary value of this is small compared to a year’s rent-free accommodation, B’s promise to A is sufficient to constitute valid consideration.
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