|
First Principles of Business Law |
| Making a contract |
| 3. The second essential element of formation: Formal execution or exchange of consideration |
| 3.9. Consideration in 'unilateral' contracts |
|
Read the facts and the question and then choose the best answer. A advertises in a newspaper, saying: "I promise to pay $1,000 to anyone who finds my stolen car and returns it to me." B sees the advertisement and finds the car. Returning the car to A, B says: "Here is your car. I want the reward." Has B provided sufficient consideration to make A's promise enforceable?
|
|
(a) No. B did not give anything to A before he found and returned the car, so as to make A's promise of a reward legally enforceable. (b) Yes. B's act of returning the car to A is sufficient to constitute consideration in these circumstances, even though the car has already been found and returned before A's promise becomes enforceable. |
|
|
|