First Principles of Business Law
Quiz: Making a contract 

Question 9

 

 

 

A promises to give a gift of $1000 to B.  B wants A’s promise to be legally enforceable and asks A to put it into writing.  A does so, and signs the written document.  In the light of these facts, which one of the following answers is the most accurate? 

(a)  Provided a promise is put into writing and signed by the person making it, it is considered to be a ‘formal’ promise and it becomes legally enforceable even if no consideration is given in exchange when the promise is made.

(b)  Only if a written promise meets the requirements of what is called a ‘deed’ will the promise be sufficiently ‘formal’ to be legally enforceable even if no consideration is given in exchange when the promise is made.

(c)   A ‘deed’ any be defined as ‘any written document that records the details of a legal transaction and which is signed by all the parties to that transaction’.

 

 

 

 

 

 

 

 

 

 

 

  
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