Sarah was an orphan. Her uncle Rocco agreed to act as her guardian until she became an adult. In that role, he borrowed money to pay for her education. She promised to repay him when she became an adult. Sarah later became an adult and married Stepan. Stepan also promised to repay Rocco for the money that he had spent on Sarah's education. Sarah and Stepan, however, now refuse to pay the money. Rocco has sued Stepan on his promise. Which of the following statements is most likely TRUE?

Question

Quizplus · Accepted Answer

Past consideration refers to a promise made in return for a benefit previously received, which is not valid consideration in contract law. Stepan's promise to repay Rocco is based on the past benefit of Sarah's education, which does not constitute valid consideration for a new promise.

Sarah Was an Orphan