Asked by Rachel Tweedy on May 26, 2024
Verified
Which of the following would most likely be enforceable?
A) An agreement supported by past consideration.
B) A substitute agreement to settle an undisputed debt.
C) A debt agreed to seven years ago in a state where the statute of limitations is six years.
D) A promise following the rendering of emergency services that is not supported by new consideration.
Past Consideration
Refers to something given or an action that has been taken in the past, which cannot legally serve as a consideration for a present contract.
Statute of Limitations
A legal rule setting the maximum time period in which certain actions can be brought to court or certain rights enforced, after which claims are barred regardless of merit.
Undisputed Debt
The amount of money owed that is not contested or challenged by the debtor, accepted as due and payable.
- Recognize the application and exceptions to the doctrine of consideration, including past consideration and moral obligation.
Verified Answer
BM
Brooke MarieMay 31, 2024
Final Answer :
B
Explanation :
A substitute agreement to settle an undisputed debt is enforceable because it is a valid consideration for a new contract. Option A is not enforceable because past consideration is not valid consideration. Option C is not enforceable because the statute of limitations has expired. Option D is not enforceable because a promise following the rendering of emergency services without new consideration is not binding.
Learning Objectives
- Recognize the application and exceptions to the doctrine of consideration, including past consideration and moral obligation.