Applied Methods Corporation promises to give stock options to Belden,a production designer,for processes he has already designed. This promise is
A)enforceable because it is a new contract.
B)enforceable because it is an illusory promise.
C)enforceable because it is supported by past consideration.
D)unenforceable.

Question

Quizplus · Accepted Answer

The promise to give stock options for processes that have already been designed is an example of past consideration. Past consideration is not a valid consideration for a new contract, and therefore the promise is unenforceable.

Applied Methods Corporation Promises to Give Stock Options to Belden,a