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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 |
| 3.10. Something already due as consideration |
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Read the facts and the question and then choose the best answer. A, a landlord, says to B: "You owe me $1,000 in overdue rent. If you pay me in full before the end of the month I will let you off paying rent for the month of December." B, a tenant in A's building replies: "It'll be hard financially, but OK, I'll pay you the $1,000 as soon as I can." On these facts, is B providing sufficient consideration to make A's promise of a rent-free month legally enforceable?
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(a) Yes, B is promising to pay the rent as soon as possible.
(b) No, B already owes the rent to A, so promising to pay it is not consideration. |
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