Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump
A)imposes a moral obligation on Kim to pay Leo.
B)imposes no obligation on Kim unless she is satisfied with the job.
C)is not sufficient consideration because it is not goods or money.
D)is the consideration that creates Kim's obligation to pay Leo.

Question

Quizplus · Accepted Answer

The act of installing the pump by Leo serves as consideration for Kim's promise to pay $500. In contract law, consideration refers to something of value that is exchanged between parties, which can include services like installing a sump pump. This exchange creates a binding obligation for Kim to pay Leo, fulfilling the requirements for a valid contract.

Kim Promises to Pay Leo $500 to Install a Sump