Henry, who is already 25, promised in writing to give his buddy Jake $250 as a gift when he celebrated his 25th birthday. Jake thanked Henry and kept the written promise in his wallet. But when the date arrived, Henry decided not to make the payment. Jake was understandably disappointed and plans to sue Henry for breach of contract in order to require him to make good on his promise. Why is Jake's lawsuit unlikely to be successful?

Question

Quizplus · Accepted Answer

In order for a contract to be enforceable, there must be consideration exchanged between the parties. Consideration refers to the benefit each party receives from the contract. In this case, Jake did not give anything to Henry in exchange for the promise to give him $250, so there was no consideration. Without consideration, there can be no enforceable contract.

Henry, Who Is Already 25, Promised in Writing to Give