Application: Considering Elvis
Consideration is something of legal value that each party gives to the contract to bind the agreement. Read and think about the following short case:
Elvis Presley, a well-known singer and entertainer, was a wealthy person. When engaged to Ginger Alden, he promised Alden's mother, Jo Laverne Alden, to pay off the remaining mortgage debt on the Alden home. However, Presley died before he had the chance to pay off the mortgage. The legal representative of Presley's estate refused to follow through on the promise to pay the mortgage debt amounting to around $40,000. Jo Laverne Alden sued the Presley estate to enforce Presley's promise.
Based on the information that you have learned in the reading that you have done, write a 150-word paper that answers the following questions about the situation described above:
• Was Presley's promise to pay the mortgage enforceable against the estate?
• Why or why not? Be sure to support your conclusion with facts, definitions, and/or examples.
Resources:
Reading-
• Course Text: Goldman, A., & Sigismond, W. (2014). Business law: principles and practices (9th ed.). South-Western: Cengage Learning
• Chapter 7, "Agreement: Offer and Acceptance"
Of the four requirements of a contract, the first and foremost element of any contract is agreement, which is reached by an offer and its acceptance. In this chapter, you will explore agreement, what constitutes an offer (and what does not), and how a party accepts (or does not accept) that offer.
Focus on the definitions and concepts provided throughout the chapter. Review and think about the examples and short cases in the chapter that demonstrate the major ideas being conveyed and illustrate the ways in which offers can and cannot be made and accepted.
• Chapter 8, "Consideration"
The second of four elements of a legally enforceable contract is consideration. In this chapter, you will explore the concept of consideration, its nature, what it consists of, and any agreements that can be enforceable without consideration. Finally, you will be introduced to the equity doctrine of promissory estoppel.
Focus on the definitions and concepts provided throughout the chapter. Review and think about the examples and short cases in the chapter that demonstrate the major ideas being conveyed.
• Chapter 9, "Capacity"
In order to have a legally enforceable contract, the parties to that contract must be competent. In this chapter, you will explore the definition of Capacity, then review the categories of individuals who are considered incompetent and therefore have limited capacity to enter into contracts.
Focus on the definitions and concepts provided throughout the chapter. Review and think about the examples and short cases in the chapter that demonstrate the major ideas being conveyed.