Juana contracts to sell Ignacio her MP3 player for $30.This contract will be fully discharged when Juana and Ignacio
A)agree to sign a bill of sale.
B)exchange the player for the $30.
C)sign a receipt.
D)shake hands and go their separate ways.

Question

Quizplus · Accepted Answer

The contract is for the sale of the MP3 player for $30, so the only way for the contract to be fully discharged is for Juana to give Ignacio the MP3 player and for Ignacio to give Juana the $30 payment. This is known as "exchange of consideration" and fulfills the terms of the contract. A bill of sale or receipt may be used for record-keeping purposes, but they are not necessary for the contract to be complete. Shaking hands and going separate ways does not fulfill the terms of the contract.

Juana Contracts to Sell Ignacio Her MP3 Player for $30