A Agrees to Paint B's House

question 57

Multiple Choice

A agrees to paint B's house.B then says to A,"If you paint my house,I'll give you $500.00." In this situation

• A)the first agreement does not include the price,but the second agreement does.
• B)together,the promise to pay and the first agreement to paint form one whole contract.
• C)the entering into the main contract is the consideration for the collateral contract.
• D)the promise to pay $500.00 is collateral to the first agreement to paint.
• E)all of the above

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Definitions:

Pulp

Pulp refers to a raw material consisting of cellulose plant fibers that are used in creating paper or other products through various processing methods.

Paper Production

The process of manufacturing paper from raw materials like wood pulp, involving various stages such as pulping, pressing, and drying.

Inferior Good

A good whose demand decreases as the income of consumers increases, inversely related to income levels.

Income of Buyers

Refers to the purchasing power or total earnings of consumers within a market, impacting their ability to buy goods and services.