Abbey helped Greyson study for an important exam for about 8 hours. After Greyson got an "A" on the exam, he told Abbey , "I will give you $25 for helping me get a good grade." Abbey said, "Thanks, I'll take it." There is:
A) no contract because there is no mutual assent.
B) no contract because there is no valid consideration.
C) no contract because $25 is not adequate consideration for 8 hours work.
D) a contract with sufficient consideration.

Question

Quizplus · Accepted Answer

In this scenario, there is no contract because there is no valid consideration. Valid consideration requires a bargained-for exchange where each party incurs a legal detriment or provides a legal benefit. Here, Abbey's act of helping Greyson occurred before Greyson promised to pay, meaning Abbey's actions were not induced by Greyson's promise, and thus, there is no consideration for Greyson's promise to pay $25.

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