Read the Following and Indicate Which Agreement Would Be a Binding

question 1

Multiple Choice

Read the following and indicate which agreement would be a binding contract.Assume that all other requirements for a binding contract have been met.

• A)Mary promised to give Planned Parenthood a donation of $1.
• B)John,late for work,found that his car battery was dead.He flagged down a passing truck and told the driver "he would be in his debt forever" if he would agree to do him the favour of jump-starting the car.The driver of the truck agreed.
• C)Mr.Kooner sold a farm valued at $190 000 to his nephew for only $50 000.
• D)Peter agreed to pay Ace Computers Ltd.$50 above the contract price if the company would have his new computer ready on the date specified in the original contract.
• E)Len agreed to sell and Karen agreed to buy four of Len's records for "some money."

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Definitions:

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a raw material for fuel and in the petrochemical industry.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive.

Tariff

A tax imposed by a government on imported or exported goods.

Total Surplus

The sum of consumer and producer surplus, representing the total benefit to society from the production and consumption of goods or services.