Exercise 2
This exercise is about offer and acceptance.
Harry drops by Mack’s house and finds him working on his old pickup truck in the driveway. Mack kicks the truck and exclaims to Harry, “This piece of junk isn’t worth a tank of gas – you can have it.” Harry says thanks and the next day comes by with his SUV to tow away the pickup. Mack stops him and says the truck is working now. Harry goes to court and claims that the truck Mack promised him was worth $500 and Mack should pay him that amount.
How should the judge rule?
- A. For Mack, because there was no consideration for the transaction.
- Yes, the correct answer is A. Mack offered the truck to Harry, and Harry indicated his acceptance by saying thanks and attempting to tow the truck away. But Harry did not provide any consideration in return for the truck. Without consideration, no contract was created.
- B. For Harry, because Mack promised him the pickup truck, and that created a contract.
- Sorry, but that's not the correct answer. Please select another.
- C. For Mack, because Harry never accepted his offer.
- Sorry, but that's not the correct answer. Please select another.