Which of the Following Agreements Is Supported by Consideration

question 10

Multiple Choice

Which of the following agreements is supported by consideration?

• A) Alice owns a sandwich shop and offers customers a loyalty card where a stamp is placed each time they buy a sandwich. Once a customer has purchased 10 sandwiches and has 10 stamps on his card, he receives a sandwich for free. Rob has ten stamps on his card and gets a free cheese sandwich.
• B) Rick works as a street cleaner in Nottingham. Every Monday, he sweeps in Lucy's neighbourhood. On New Year's Day, the streets are littered with firecrackers and beer cans. When Rick arrives the following Monday, Lucy offers him £20 to clean the pavement in front of her house.
• C) A wall in Tom's apartment is rotting away and will have to be replaced. Tom knows the source of the leak is coming from Dan's apartment, but knows that Dan will not pay unless he takes him to court. Instead, he tells Suzanne, who is easily intimidated, that the leak is coming from her apartment and threatens to sue her unless she pays £550.
• D) None of the options given is correct.

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Definitions:

Probate

A legal process that deals with the assets and debts of a deceased person, ensuring proper distribution according to the will or the law.

Resided

To have been domiciled or located in a particular place.

Trust's Principal

The original assets placed into a trust by the grantor, excluding any income or appreciation generated by those assets.

Investment Costs

Investment costs include all the expenses associated with acquiring an asset, including purchase price, broker fees, setup costs, and any other costs necessary to bring the asset to a usable state.