Pete and Vicky make the following agreement. - 8133

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Pete and Vicky make the following agreement. Pete promises he will go into a store and buy something for $5 and pay for it with a $100 bill on which he has written “Happy Birthday Vicky!” Vicky promises that after Pete collects his change and leaves the store, she will go into the same store and buy something that costs $5 and pay with a $10 bill. When the clerk attempts to give her change for $10, Vicky will claim that the $100 bill that is in the cash register was money she just got for her birthday, and will demand change from a $100 bill. Then Pete and Vicky will split the extra money they think Vicky will receive in change. Is this a valid contract? 

 

A.   This is not an enforceable contract because the agreement is not in writing.

 

B.   This is a voidable contract because Vicky can change her mind.

 

C.   This is a void contract, because the parties agreed to commit fraud.

 

D.   This is a valid contract. There was a promise in exchange for a promise, and both parties got what they wanted.

 

 
Solution Description

Pete and Vicky make the following agreement. Pete promises he will go into a store and buy something for $5 and pay for it with a $100 bill on which he has written “Happy Birthday Vicky!” Vicky promises that after Pete collects h