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After mowing his own lawn, David goes next door and mows his neighbor Lena’s lawn as a nice gesture. As he is finishing up, Lena arrives home. Happy to find a newly mown lawn, Lena says, “That’s so nice of you! When I get paid Friday, I’ll give you $20.” David says, “I accept!” Which best describes the situation?

There is a contract, since David accepted the offer.

There is no contract, because Lena made a unilateral offer.

There is no contract, because Lena gave no consideration.

There is no contract, because David gave only past consideration.

Operation Management, Management Studies

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