Question

In: Operations Management

Examine the following and: state whether consideration is present from both Dale and John (just write...

Examine the following and:

  • state whether consideration is present from both Dale and John (just write Yes or No; ignore other issues such as Intention) and
  • state the rule and the case that best support your decision.
  1. John cleans his next-door neighbour Dale’s swimming pool because it was inundated with leaves blown from a tree on his land during a storm. Two weeks later Dale tells John that she so appreciated the excellent job he did that she will pay him $200.

Solutions

Expert Solution

No, The consideration is not present from both .

In general, consideration means a payment or a reward. but in law, consideration means flowing of a good/payment/reward or anything of some value from one party/side to the other side or party. One very important element of a consideration in eyes of law is that both parties involved in consideration should recive something .A consideration might be in the form of money or any value in exchange of any goods and services. So even though this case fulfills these conditions, still it is not a consideration because it is a past voluntary service . In law past voluntary services are a consideration only when a promise is made at the time of service to pay the consideration later.But here no as such promise was made from Dale to John at the time when he claned her swimming pool.Also there was no offer of money in the past from Dale's side. She is offering the money two weeks later. The money that she is paying to John for his services is not a consideration but rather a form of a gift that she is rewarding John with for his service. So this is not a consideration present from both sides.


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