Asked by Desirea Moore on Jun 17, 2024
Verified
Owen once owed Carl a $1,000 debt,but the statute of limitations ran on that obligation,discharging Owen.Later,Owen promises in writing to pay Carl the debt.Why is there no consideration for this promise? Why is it binding anyway? What additional requirement do some states impose to make the promise binding?
Statute of Limitations
A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.
Consideration
The value (such as money, services, or goods) that is exchanged between parties in a contract, serving as the essential reason for a party entering into a legal agreement.
Binding Requirement
A legal or formal obligation that parties must adhere to.
- Comprehend the legal consequences of commitments made based on ethical considerations or for the benefit of society, lacking traditional consideration.
Verified Answer
MM
Melissa MailboyJun 20, 2024
Final Answer :
There is no consideration because Carl gave Owen no present legal value in exchange for Carl's promise.Most states,however,make such promises binding despite the absence of consideration-perhaps on something akin to "moral obligation" grounds.But many of these states require that the promise be written.
Learning Objectives
- Comprehend the legal consequences of commitments made based on ethical considerations or for the benefit of society, lacking traditional consideration.