Question

Mr. Blue gave his favorite nephew Jim Jr, who is a mechanic, $1000 in January. Later that year he needed his car repaired. In the sales contract Mr. Blue indicated that the amount owed should be deducted from the money already paid. A court will find that Mr. Blue failed to give proper consideration for the contract.

a. True
b. False

Answer 1

The question involves the legal concept of consideration in a contract between Mr. Blue and his nephew. If the $1000 given earlier was a gift, then Mr. Blue failed to provide new consideration for the car repair services.

Step-by-step explanation:

The subject matter of this question is whether consideration was given in a contract scenario between Mr. Blue and his nephew Jim Jr. According to contract law, consideration refers to something of value that is exchanged between parties to a contract. In this case, Mr. Blue already gave his nephew $1000 in January, later indicating that any amount owed for car repairs should be deducted from the money already paid. It can be argued that Mr. Blue failed to provide new consideration for the contract of the car repair because the $1000 was gifted earlier without the expectation of services in return.

However, it is possible that a court might not find that Mr. Blue failed to give proper consideration if the money given in January was intended as a loan or advance payment for future services. Assuming there was no such intention, the answer would likely be true, as pre-existing payments typically do not constitute valid consideration for new contractual obligations.