4. Aria contracted with Kasem to complete a small construction project by June 30 with $15,000 due on completion. Kasem wants to be paid early and on June 12 agreed with Aria to accept $12,000 on June 20 in full consideration of the construction contract. Which of following statements regarding the agreement to reduce consideration is true?

a) Aria and Kasem are both bound by the agreement to reduce the consideration.

b) Aria and Kasem are not bound to the reduction in consideration as this agreement was gratuitous.

c) Kasem is entitled to the remaining $3,000 and can sue Aria for this amount.

d) Kasem can change his mind prior to June 20 and require Aria to pay the full amount on June 30.

5. Kiran, who is 17 and lives with his parents, decided to purchase a motorcycle as he was tired of borrowing his parents car. He signed a contract to purchase a motorcycle with a salesperson at Active Motors Ltd. (Active), who mistakenly assumed that Kiran was 18, the age of majority in the province. Kiran purchased the motorcycle for $16,200, payable in 36 equal monthly payments of $450. On September 3, Kiran turned 18. On September 15, Kiran made his regular monthly payment. In October, the weather turned cold and he no longer wanted the motorcycle or the monthly payments. Kiran returned the motorcycle to Active to end the contract on the basis that he was 17 when he signed the agreement. Which of the following statements regarding Kirans situation is true?

a) Kiran is not bound to make the remaining payments as he was a minor when he signed the contract.

b) Kiran is bound to make the remaining payments as the motorcycle provides transportation and is a necessary.

c) Kiran is bound to make the remaining payments as he ratified the contract.

d) Kirans parents are bound to make the remaining payments as he was a minor when he signed the contract.

6. Megan married Mark two years ago. Megans parents were not fond of Mark and did not want them to marry. As their dislike for Mark grew, Megans parents offered her $20,000 to divorce Mark. If Megan accepts the offer, which of the following statements describes the nature of the agreement between Megan and her parents?

a) The agreement represents a valid contract.

b) The agreement represents a voidable contract.

c) The agreement represents a tort and is illegal.

d) The agreement represents a void contract.