Read the Following and Indicate Which Agreement Would Not Be

question 49

Multiple Choice

Read the following and indicate which agreement would not be a binding contract because of a problem with the requirement of consideration. Assume all the other requirements for a binding contract have been met.

• A) Mr. Kooner sold a farm valued at $190,000 to his nephew for only $50,000.
• B) Peter agreed to pay Ace Computers Ltd. $50 above the contract price if the company would have his new computer ready ten days earlier than the date specified in the original contract.
• C) John, late for work, found his car battery was dead. He flagged down a passing truck and told the driver he would pay him $8 if he would agree to do him the favour of jump-starting the car. The driver of the truck agreed.
• D) Len agreed to sell and Karen agreed to buy four of Len's records for "some money."
• E) Mary promised in writing and under seal to give Planned Parenthood a donation of $100.

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Definitions:

Domestic Opportunity Cost

The cost of forgoing the next best alternative when choosing to produce a good or service domestically.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

Domestic Opportunity Cost

The cost of forgoing the next best alternative use of a country's resources when choosing to produce a particular good or service.

Domestic Supply

The total amount of a good or service that is available from domestic producers within a country, influencing national prices and availability.