Yolanda was shoveling snow from her sidewalk, and just to be nice, she also shoveled snow from her neighbor Melody's walk. The next day, Melody promises that she will pay Yolanda $25 for shoveling snow from her walk. Has a contract been created?a.No, Yolanda had a preexisting duty to shovel Melody's walk.b.Yes, Melody made a promise and that created the contract.c.No, past consideration is not valid consideration.d.Yes, Melody has a moral obligation to pay for the work, even if she didn't request it.
Question
Yolanda was shoveling snow from her sidewalk, and just to be nice, she also shoveled snow from her neighbor Melody's walk. The next day, Melody promises that she will pay Yolanda $25 for shoveling snow from her walk. Has a contract been created?a.No, Yolanda had a preexisting duty to shovel Melody's walk.b.Yes, Melody made a promise and that created the contract.c.No, past consideration is not valid consideration.d.Yes, Melody has a moral obligation to pay for the work, even if she didn't request it.
Solution
c. No, past consideration is not valid consideration.
In contract law, for a contract to be valid, there must be an exchange of consideration (something of value) between the parties involved. This exchange must be mutual and occur at the same time for the contract to be valid. In this case, Yolanda had already shoveled the snow before Melody promised to pay her. Therefore, Yolanda's act of shoveling the snow is considered past consideration, which is not valid consideration for forming a contract.
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