With Regard Only to the Requirement of Consideration,which One of the Following

question 74

Multiple Choice

With regard only to the requirement of consideration,which one of the following would be a binding contract?

• A) a promise by Tom to drive a co-worker to Timmins
• B) a promise to give $10 exchanged for a promise to give a can of pop
• C) a promise by Mr. Brent to pay $25 to John who found and returned Brent's wallet, which Brent didn't even know he had lost until John delivered it
• D) an agreement between a contractor and a homeowner that the owner would pay an additional $1000 if the contractor would complete the existing contract according to all its terms
• E) a written promise, but not under seal, to give John $50 on Saturday

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Definitions:

Consumption Bundle

A combination of goods and services that a consumer chooses to consume within a given time period.

Income

Funds acquired regularly as earnings from employment or investment returns.

Substitution Effect

The change in consumption patterns due to a change in relative prices, holding the consumer's utility level constant.

Income Effect

The change in an individual's consumption choices resulting from a change in real income, due to changes in price.