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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 |
| 3.8. Something already done as consideration |
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Read the facts and the question and then choose the best answer. A, a tenant, says to B: "Last weekend I painted the inside of my flat at my own expense. Because of this, will you let me off paying half of next month's rent?" B replies to A: "Yes. Since you have painted the flat I will charge you only half the usual rent next month." By painting B's flat, has A provided sufficient consideration to make B's promise of a reduced rent legally enforceable?
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(a) Yes. By painting the flat, A has done something in exchange for B's promise. (b) No. A painted the flat before B made the promise to reduce A's rent. |
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