Some said that the enforceability of a contract shall not be dependent on the existence of...

Some said that the enforceability of a contract shall not be dependent on the existence of consideration but on a mere exchange of promises. To what extent would you agree/disagree?

Solutions

Expert Solution

I agree with the statement in a limited extent and make it enforceable, if a promise causes promisee (to whom the promise is made) taking action or refraining from taking action and it makes a significant change to the promisee, on the basis of promise made by the promisor ( who has made the promise). For example, uncle Jacob promises to pay $100 if Sam quits smoking. Now Sam (promisee) takes initiatives and refrain from smoking. It makes enforceable for the Uncle Jacob (promisor) to pay. It is also considered enforceable under the doctrine of promissory estoppel.

Here, the promise should also be legitimate in nature, to be enforceable and parties involved should be competent and able to enter the contract.

But, promises only for the sake of promise, should not be enforceable. For example, promise to give a bicycle to the kid on next birthday, should not be enforceable in the court of law.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Why are the long-lived assets and inventory assertions of existence said to have an inherent risk...

Why are the long-lived assets and inventory assertions of existence said to have an inherent risk of material misstatement that is higher than that of the account payable? (10%)

1. Why are the long-lived assets and inventory assertions of existence said to have an inherent...

1. Why are the long-lived assets and inventory assertions of existence said to have an inherent risk of material misstatement that is higher than that of the account payable? 2. Do you think the blank confirmation is included in the positive or negative confirmation? Also explain what the advantages and disadvantages of each type of confirmation are, along with what kind of situation it is suitable to use! 3. Why is a cash account said to have a high inherent...

Existence of a contract (LO 3-2) The time frame in each of these scenarios is after...

Existence of a contract (LO 3-2) The time frame in each of these scenarios is after the effective date of the new revenue recognition rules in ASC Topic 606. Required: For each of the following independent situations, determine the point at which a contract exists and is subject to application of the 5-step revenue recognition model by Amiel Corporation. A regular customer of Amiel’s always places an order on the last day of the month, but did not do so...

Which of the following statements is true? a. The seller of a futures contract is said...

Which of the following statements is true? a. The seller of a futures contract is said to be short futures. b. The buyer of a futures contract is said to be long futures. c. The seller of a futures contract is said to be long futures. d. The buyer of a futures contract is said to be short futures. e. Choices a and b

Existence of a contract (LO 3-2) Robertson, Inc., manufactures metal products. As part of the manufacturing...

Existence of a contract (LO 3-2) Robertson, Inc., manufactures metal products. As part of the manufacturing process, metal shavings are produced. Rather than disposing of the metal shavings, Robertson sells them to a metal recycler. Required: Draft a memo discussing whether Robertson’s sale of metal shavings to the recycler is subject to ASC Topic 606?

Define ethnocentrism and discuss the reasons for its existence. What are some of the consequences of...

Define ethnocentrism and discuss the reasons for its existence. What are some of the consequences of ethnocentrism, both negative and positive (there are some)? Using an example of a behavior that is accepted in another culture but would be questioned in American society, describe how you could use cultural relativism and come to understand this different behavior. Then, switch sides and apply cultural relativism. Using the same example, how would you react to this same behavior? (Examples: burial practices, marriage...

What is the reason behind the existence of some many estimates of elasticity of supply: A....

What is the reason behind the existence of some many estimates of elasticity of supply: A. wages are measured imprecisely B. hours of work are measures imprecisely C. a reference time period for elasticity estimation is not clearly defined D. All of the above Marginal utility of leisure is________, and marginal utility of consumption is_________. A. positive; negative B. negative; positive C. positive; positive D. negative; negative What is the budget line for consumption (C) and leisure (L) if a...

It is said that whenever parties’ bona fide contract without any duress or intimidation and they...

It is said that whenever parties’ bona fide contract without any duress or intimidation and they agree to specific contractual obligations they are bound by their decisions. Indeed, they cannot avoid their obligations for the fear of been in breach of contract. However, there are unforeseen event which can undermines a party's principal purpose for entering into a contract, which makes performance of the contract is radically different from what was originally contemplated by both parties, which is referred to...

The existence in some societies of parentally arranged marriage and in other societies of marriage decided...

The existence in some societies of parentally arranged marriage and in other societies of marriage decided by the marrying couple is one example of cultural relativism. What goals do the two practices promote? Does this example support the thesis of ethical relativism, or of ethical universalism or of neither? Analyze opposing arguments, and draw a conclusion

In class, it is said that a new forward contract should always have zero value because...

In class, it is said that a new forward contract should always have zero value because the initial delivery price is set to the forward price. However, sometimes banks need to structure forward contracts to have nonzero values. They make a forward contract valuable by setting the delivery price different from the forward price. The following problem gives such a situation. (a) On February 15, a company enters a forward contract with a bank to sell 500,000 euros in six...

Subjects