Applied Methods Corporation promises to give stock options to Brad, a production designer, for processes he has already designed. This promise is
A) enforceable because it is a new contract.
B) enforceable because it is an illusory promise.
C) enforceable because it is supported by past consideration.
D) unenforce?able.

Question

Quizplus · Accepted Answer

The promise is unenforceable because it is based on past consideration, which is not valid consideration for a new contract. Consideration must be something of value exchanged between the parties at the time of the agreement.

Applied Methods Corporation Promises to Give Stock Options to Brad