Which of the following would qualify as valid consideration? Candice gives out free samples in order to get more people to buy her ice cream. Stu makes Lewis promise to give all his extra lunch money to Stu every day after school. Carlie contracts with her landlord to pay for rent by landscaping the property and cleaning and painting empty apartments. George contracts with his mother that she will leave the good family silver to him when she passes away because he was the most helpful son.
The Correct Answer and Explanation is:
The correct answer is:
Carlie contracts with her landlord to pay for rent by landscaping the property and cleaning and painting empty apartments.
Explanation:
In contract law, consideration is something of value exchanged between the parties to form a binding contract. It can be a promise, an act, or a forbearance, but it must be legally sufficient, bargained-for, and mutually agreed upon. Essentially, each party must give something and receive something.
Let’s examine each option:
1. Candice gives out free samples in order to get more people to buy her ice cream.
- Not valid consideration. Giving out free samples is a unilateral marketing decision. There is no exchange or mutual promise between Candice and the recipients of the samples. She receives nothing in return and is not entering into a binding agreement.
2. Stu makes Lewis promise to give all his extra lunch money to Stu every day after school.
- Not valid consideration. This appears to be a one-sided arrangement that lacks mutual benefit or exchange. There’s no bargained-for exchange and Lewis receives nothing of value in return for his promise. For a contract to be enforceable, both parties must gain something.
3. Carlie contracts with her landlord to pay for rent by landscaping the property and cleaning and painting empty apartments.
- ✅ Valid consideration. Carlie is providing services (landscaping, cleaning, and painting), and in return, she receives housing. This is a clear bargained-for exchange, where both parties are giving and receiving something of value. This kind of arrangement is common in barter agreements and service-based rent reductions.
4. George contracts with his mother that she will leave the good family silver to him when she passes away because he was the most helpful son.
- Not valid consideration. Promises of future gifts based on past actions or moral obligation are not enforceable contracts. The “consideration” (being a helpful son) has already occurred, and past consideration is not valid under contract law.