Sameer promises his uncle, Farouk, that he will study every day and earn straight A's during the spring semester in exchange for having his tuition paid for the fall semester. Farouk agrees, but after Sameer studies all semester and receives straight A's, Farouk refuses to pay, saying that no such contract ever existed. Which of the following is true?
A) Consideration was present, there was an enforceable contract, and Farouk has wrongfully refused to pay.
B) There was no consideration present, and Farouk has no obligation to pay.
C) There was no consideration present, but Farouk must pay under principles of promissory estoppel.
D) There was consideration present, but Farouk is not required to pay because the contract was illusory.
E) There was consideration present, but Farouk is not required to pay because he did not receive a benefit personally.

Question

Quizplus · Accepted Answer

Consideration exists when a promise is made in exchange for the performance of an act or forbearance. In this case, Sameer's promise to study and earn straight A's, which he fulfilled, was the consideration for Farouk's promise to pay his tuition. This creates an enforceable contract, and Farouk's refusal to pay despite Sameer's fulfillment of his part of the agreement constitutes a wrongful refusal.

Sameer Promises His Uncle, Farouk, That He Will Study Every