Cheryl hired Golden Construction Co. to build a house for her. The plans for the
ID: 462316 • Letter: C
Question
Cheryl hired Golden Construction Co. to build a house for her. The plans for the house were complex, and expert workmanship was required. After the house was completed, Cheryl liked it so much that she promised to pay Golden a $4,000 bonus. Later, Golden demanded the money, but Cheryl refused to pay it. Golden sues. What is the most probable result?
a. Golden wins: the promise was used to entice Golden to do an outstanding job, which is adequate consideration.
b. Cheryl wins; the promis is based on past consideration
c. Golden wins; the promise is based on past consideration whichis legally sufficient.
d. Golden wins: the promise is based on changed circumstances which makes it enforceable.
Explanation / Answer
ans=b)Cheryl wins; the promis is based on past consideration
Past Consideration:
A past promise or act which forms the basis of a future promise.
A promise is said to be given for past consideration when the promisor’s motivation for making the promise is a past benefit he received that gave rise to a moral, but not legal, obligation to make compensation
A promise is said to be given for past consideration when the promisor’s motivation for making the promise is a past benefit he received that gave rise to a moral, but not legal, obligation to make compensation
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