A customer asks an entrepreneur to sponsor an upcoming community event and the entrepreneur agrees to do it with no fee,but changes his mind right before the deadline. By which basic element of a contract agreement is the entrepreneur not obligated to uphold his part of the deal?

Question

Quizplus · Accepted Answer

Consideration refers to the exchange of something of value between parties in a contract. In this scenario, the entrepreneur agreed to sponsor the event with no fee, but there was no exchange of consideration. Therefore, there was no binding contract and the entrepreneur was not obligated to uphold his part of the deal.

A Customer Asks an Entrepreneur to Sponsor an Upcoming Community