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Consideration

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Consideration

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 15, 2018 at 6:17 pm #430198
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Alvin runs a business selling expensive cars. Last Monday he mistakenly placed a notice on one car indicating that it was for sale of $5000
    when in fact its real price was $25000. Bert later noticed the sign and recognizing what a bargain it was immediately
    indicated to Alvin that he accepted the offer and would take the car for the indicated amount. Alvin, however, told bert
    that there had been a mistake and that the true price of the car was $25000.. Bert insisted that he was entitled to get
    the car at the lower price , and when alvin would not give to him at that price Bert said he would sue Alvin.

    After Bert had left, Alvin chnaged the price on the car to $25000 and subsequently Cat came in and said she would like
    to buy the car, but that she would have to arrange the finance.

    My question: Sir here, as C said that she would have to arrange the finance so is it executory consideration?

    January 15, 2018 at 6:44 pm #430209
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Yes, I suppose it is. But so too is Alvin’s side of the transaction because Cat has not taken possession of the car

    Alvin owes her the car

    Cat owes Alvin the money

    OK?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Consideration’ is closed to new replies.

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