Celine offered Jenna $50 for a six carat diamond necklace. Jenna immediately agreed to sell it to Celine. However, after Jenna went home and looked at it again, she decided that the necklace was worth a lot more than $50. She told Celine she could not sell her the necklace for such a low price. In this scenario, did the parties have an enforceable contract?

Question

Quizplus · Accepted Answer

The parties had an enforceable contract because there was an offer, acceptance, and consideration, which are the elements of a valid contract. The adequacy of consideration (the $50) is generally not evaluated by courts unless it is so grossly inadequate as to suggest fraud or duress.

Celine Offered Jenna $50 for a Six Carat Diamond Necklace