John agrees to purchase a car from Donald. The Blue Book value of the car is $10

Question

John agrees to purchase a car from Donald. The Blue Book value of the car is $10,000, but the agreed upon price is $5,000 to be paid in 10 equal monthly installments of $500. As part of the deal, John also promises to give Donald a rock from the surface of the moon. This rock is property of the federal government and is kept in a vault at NASA in Houston.

Provide your assessment of whether valid consideration has been given for this contract in terms of legality, adequacy, and possibility of performance.

Be sure to respond in a business-like manner using proper spelling, grammar and sentence structure.

Explanation / Answer

The consideration mentioned in the case by John is not valid. This is because he does not own the Rock and it is the property of NASA.

If we talked about the legality then the contract is totally illegal. This is because the consideration which is rock is not the property of John and the property of Federal government so it cannot be part of the contract.

John does not have the capacity here meet the contract. Capacity is very important for forming a valid contract.

Performance perspective is that the performance cannot be made because ownership of the rock is not there. With ownership is not there then there is no possibility that the contract will be performed.

The terms are not valid as well so the contract term cannot be enforced in the house of law as well.

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