Question

A billionaire is really thirsty so he goes to a gas station to get some Sprite. As he arrives, he notices that it's closed, but there is a soda machine outside. While going up to the machine, he realizes he left his wallet at home. He asks a kid for 50 cents but the kid wanted something in return. The billionaire takes off his Rolex, the least expensive thing on him and exchanges it for the 50 cents.

If the billionaire wanted to get his watch back, could he be able to or does the 50 cents from the kid count as consideration?

1. Yes
2. No

Answer 1

The billionaire cannot simply retrieve his Rolex without further transactions or legal action, as the 50 cents given by the child is legally considered valid consideration. The exchange constitutes a binding contract, assuming all other elements of a valid contract are met.

Step-by-step explanation:

The story presented involves the concept of consideration in contract law. When the billionaire exchanged his Rolex watch for 50 cents with the child, it established a contract where the 50 cents given by the child is the consideration for the watch. In legal terms, consideration is something of value promised by one party to another when making a contract.

Since the child gave something of value (50 cents), which is legally adequate and there was bilateral consent, this act constitutes valid consideration. Therefore, if the billionaire wished to get his Rolex back, he would have to provide something of equivalent or greater value in return or prove that the transaction was not a valid contract, such as by showing it involved fraud, duress, or incapacity to contract.

In a more realistic scenario, beyond the legal definition, practical considerations such as the fairness of the deal, the child's comprehension of the transaction's value, and the social or moral aspects of the exchange may also come into play.