Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 13

Past Consideration. Daniel, a recent college graduate, is on his way home for the Christmas holidays from his new job. He gets caught in a snowstorm and is taken in by an elderly couple who provide him with food and shelter. After the snowplows have cleared the road, Daniel proceeds home. Daniel's father, Fred, is most appreciative of the elderly couple's action and in a letter promises to pay them $500. The couple, in need of funds, accept Fred's offer. Then, because of a dispute with Daniel, Fred refuses to pay the couple the $500. Discuss whether the couple can hold Fred liable in contract for the services rendered to Daniel. (See Consideration.)