Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once Sherry starts running the marathon, Alan ________.
A) can revoke the contract as informal verbal agreements are not binding
B) cannot revoke the contract
C) can reduce the money on offer
D) can only increase the money on offer

Question

Quizplus · Accepted Answer

Once a contract has been formed, it is binding and cannot be unilaterally revoked by one party without the consent of the other party. In this scenario, Alan made a promise to pay Sherry $5,000 if she runs the Boston Marathon. Sherry then started running the marathon, which means she has begun to perform her part of the agreement. Therefore, Alan cannot revoke the contract.

Alan Tells Sherry That He Will Pay Her $5,000 If