Epsilon Inc and Delta Ltd entered into an agreement.Epsilon promised to pay $10 000 to Delta in March.Delta promised to deliver a piece of machinery to Epsilon in June.Epsilon paid the money in March.It is now April.The parties do not yet have a contract because while Delta has given a promise, it has not yet performed that promise.

Question

Quizplus · Accepted Answer

The parties do have a contract as soon as the agreement was made and both parties exchanged promises (Epsilon to pay $10,000 and Delta to deliver machinery), regardless of whether the performance (delivery of machinery) has occurred yet.

Epsilon Inc and Delta Ltd Entered into an Agreement