Costello hired Sagan to drive his racing car in a race. Sagans friend Gideon promised to pay

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Costello hired Sagan to drive his racing car in a race. Sagan’s friend Gideon promised to pay Sagan $3,000 if she won the race. Sagan won the race, but Gideon refused to pay the $3,000. Gideon contended that no legally binding contract had been formed because he had received no consideration from Sagan in exchange for his promise to pay the $3,000. Sagan sued Gideon for breach of contract, arguing that winning the race was the consideration given in exchange for Gideon’s promise to pay the $3,000. What rule of law discussed in this chapter supports Gideon’s claim?

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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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