Question

Jose needs money but his wallet is as empty as his bank account, He remembers he has 3 pieces of gold that he inherited from his dad. Desperate, he agrees to sell all the coins for $400 to his neighbor.

Is the deal supported by consideration?

1. Yes
2. No

Answer 1

The contract between Jose and his neighbor is supported by consideration, with the gold and money exchanged as valuable items on both sides.

Step-by-step explanation:

Yes, the deal between Jose and his neighbor is supported by consideration. In legal terms, consideration refers to something of value that is exchanged between the parties in a contract. In this scenario, Jose's three pieces of gold serve as the consideration he is giving, while the $400 he receives from his neighbor is the consideration his neighbor provides. Both parties are giving up something of value, which makes the contract valid and the deal legally binding, assuming all other contractual elements are met.