Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 3

Preexisting Duty. Ben hired Lewis to drive his racing car in a race. Tuan, a friend of Lewis, promised to pay Lewis $3,000 if he won the race. Lewis won the race, but Tuan refused to pay the $3,000. Tuan contended that no legally binding contract had been formed because he had received no consideration from Lewis for his promise to pay. Lewis sued Tuan for breach of contract, arguing that winning the race was the consideration given in exchange for Tuan's promise to pay. What rule of law discussed in this chapter supports Tuan's claim? Explain. (See Consideration.)