Polaris intended to advertise their new 2021 jet ski for sale for the price of $15,000.00. When Bill Smith, at Big Smith’s Watercraft, created the newspaper advertisement, he typed the advertisement incorrectly for $1,500.00. Tom Riddle took a copy of advertisement to Bill Smith with $1,500.00 in cash to purchase the new jet ski. Bill advised him that it was an accident and that he did not intend to sell the Jet Ski.
Consideration must include something legally sufficient of value that must be given in exchange for the promise, that includes:
a. a promise to do something that one has no prior legal duty to do
b. the performance of an action that someone must undertake
c. clearly communicated terms communicated to the offeree
d. serious intentions to be bound
a. a promise to do something that one has no prior legal duty to do
The correct choice that includes all the necessary elements of consideration is:
c. clearly communicated terms communicated to the offeree
Consideration requires that the terms of the agreement are clearly communicated to the party to whom the offer is made (the offeree). In this case, the advertisement stating the price of the jet ski is the offer, and Tom Riddle, as the offeree, saw and understood the terms communicated in the ad.
The correct answer is option d. serious intentions to be bound.
Consideration is an essential element of a valid contract. It refers to something of value that is given in exchange for a promise. In this scenario, Tom Riddle took a copy of the incorrect advertisement to Bill Smith with $1,500.00 in cash to purchase the new jet ski. However, Bill advised him that it was an accident and that he did not intend to sell the jet ski.
In this case, Tom Riddle's act of bringing the cash to purchase the jet ski can be considered as consideration. He had the serious intention to purchase the jet ski and was willing to provide the agreed-upon amount. On the other hand, Bill's statement that it was an accident and that he did not intend to sell the jet ski indicates that he did not have the serious intention to be bound by the agreement.
Therefore, the correct choice is option d, serious intentions to be bound.