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The Plaza Hotel Contracts with EZ Lawn to Have EZ

Question 41

Multiple Choice

The Plaza Hotel contracts with EZ Lawn to have EZ mow the grass on the Plaza grounds for the next 10 years.However,there is a clause in the contract that states if the hotel chooses,the contract may be terminated provided Plaza pays EZ $2,000 on termination.Which of the following is correct?


A) The contract is unenforceable because the option to cancel clause makes the contract an illusory promise.
B) The contract is unenforceable because the $2,000 is past consideration.
C) The contract is unenforceable because only one party has the option to cancel.
D) The contract is enforceable because the option to cancel clause is supported by consideration.

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