What is the effect of Hye agreeing to give Sam a DVD in return for the book?
A) Hye and Sam have an enforceable contract, and Hye has also satisfied the negotiability condition regarding the form of payment.
B) Hye and Sam have an enforceable contract, but the agreement fails to satisfy the negotiability requirement that payment be in a sum certain in money.
C) Because payment is not in a sum certain for money, Hye and Sam do not have an enforceable contract nor does the agreement satisfy the negotiability requirement that payment be in a sum certain in money.
D) Because payment is not in a sum certain for money, Hye and Sam do not have an enforceable contract, but the requirement of negotiability regarding the form of payment has been satisfied.
E) Unless Sam acknowledges in writing that the fair market value of the DVD is equivalent to the value of the book he provided to Hye, there is no enforceable contract nor is the agreement negotiable.

Question

Quizplus · Accepted Answer

Contracts can be formed with various forms of consideration (what is exchanged), and do not require payment to be in a sum certain of money to be enforceable. The negotiability condition mentioned, which requires payment to be in a sum certain in money, applies to negotiable instruments (like checks or promissory notes), not to all contracts. Therefore, Hye and Sam have an enforceable contract based on the exchange of goods (DVD for a book), but this scenario does not meet the specific requirement for negotiability concerning payment in a sum certain in money, as that concept does not apply here.

What Is the Effect of Hye Agreeing to Give Sam