JD Next Practice Exam

In the scenario where Joe offers to treat Harry to coffee in exchange for a ride, what would a court likely decide?

1. They had a valid contract due to Joe's promise

2. Harry is entitled to coffee regardless of Joe's decision

3. There was no valid contract since consideration was based on a past event

4. Joe's promise was legally binding as a verbal contract

The correct answer is: There was no valid contract since consideration was based on a past event

In the context of contract law, the situation between Joe and Harry involves the concept of consideration, which is a fundamental element for the formation of a valid contract. Consideration refers to something of value that is exchanged between parties in a contract. In this scenario, if Joe's offer for coffee is viewed as conditional on Harry providing a ride, consideration must be present, meaning both parties have to give and receive something of value at the same time. When analyzing the situation, if Harry's ride occurred before Joe's offer to treat him to coffee, then the promise of coffee cannot serve as valid consideration for the ride. The reason is that a valid contract requires consideration to be contemporaneous with the promises being made; past actions cannot be the basis for new contractual obligations. Therefore, the court is likely to conclude that there is no valid contract because Joe's promise of coffee is not supported by new consideration from Harry’s action of giving a ride, which had already taken place. Thus, the court would likely determine that there was no valid contract between Joe and Harry due to the timing of the consideration.