ABC Co.promises to pay Sarah $1,000 for the "excellent work she has done in the past." When ABC does not pay,Sarah may sue and collect the $1,000.

Name: ABC Co.promises to pay Sarah $1,000 for the "excellent work she has done in the past." When ABC does not pay,Sarah may sue and collect the $1,000.
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Question

Quizplus · Accepted Answer

This situation describes a gift rather than a contract because there is no consideration for ABC Co.'s promise; consideration requires a bargained-for exchange, and past actions do not qualify.

ABC CoPromises to Pay Sarah $1,000 for the "Excellent Work She