Contract- Equitable Theory Analysis

Contract- Equitable Theory Analysis - Contract/Equitable...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Contract/Equitable Theory Analysis A. Wilma has a tendency to get speeding tickets so Fred tells her that he will give her $1000.00 if she does not get a ticket for 1 year. Wilma drives very carefully and goes a complete year without a ticket. Is Fred obligated to pay? Why or why not? No, Fred is not obligated to pay Wilma because they did not enter into an enforceable contract. The creation of a contract must include an offer, acceptance and consideration. Fred made an offer of $1000.00 for not receiving a ticket for one year to Wilma and she accepted it by refraining from acquiring citations for the time specified. However, the element of consideration was not met because the conditions necessary to be defined as consideration, that something must be bargained for exchange and the thing exchanged must have legal value, were not met. Legal value of a consideration can be either promising to do something that a person is not required to do or promising not to do something that a person is entitled to do. Because obeying the law is something that
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/15/2011 for the course BUSINESS L 101 taught by Professor Smith during the Spring '11 term at American.

Ask a homework question - tutors are online