Sarah was an orphan.Her uncle Rocco agreed to act as her guardian until she became an adult.In that role, he borrowed money to pay for her education.She promised to repay him when she became an adult.Sarah later became an adult and married Stepan.Stepan also promised to repay Rocco for the money that he had spent on Sarah's education.Sarah and Stepan, however, now refuse to pay the money.Rocco has sued Stepan on his promise.Which of the following statements is most likely TRUE?

Question

Quizplus · Accepted Answer

Stepan's promise to repay Rocco for the expenses incurred on Sarah's education is based on past consideration, which generally does not constitute valid consideration for a new contract. Since the expenses were incurred before Stepan made his promise, his promise is not supported by new consideration and is therefore unenforceable.

Sarah Was an Orphan