Professor Peters Teaches Accounting for Petra University

Essay

Professor Peters teaches accounting for Petra University. Monday morning, she comes into class, exhausted from a busy weekend and tells her students that she does not want to teach that day. She states she will only be persuaded to teach if the students pay her an additional $45.00 each. Some students do, and she asks the other to leave the classroom. After her class that day, a group of students approach her and ask her if she would be willing to use her accounting skills to look over their financial books for their new business. She agrees to do it for $100.00. While looking at their financial statements she tells the students that if they all get As on their final exam she will give them $1000.00 each if she wins the lottery that night. Evaluate each situation to determine if there is consideration. For each, explain why or why not consideration exists.