Kyle's Fabric Inc. agreed to supply 50 bolt of fabric to Fabric Stores of $50 per bolt. Shortly after the contract came into effect, the market price of this fabric rose to $75 per bolt so Kyle's Fabric Inc asked for more money. Fortunately, Fabric Stores Ltd. was agreeable to paying the new higher price. Why might Fabric Stores Ltd's promise to pay an additional $25 per bolt be unenforceable? 1) the inadequate consideration given to Kyle's Fabric Inc. for the promise to pay the price increase 2) the absence of consideration or a seal for the promise to pay the price increase 3) the inadequate consideration given to Fabric Stores Ltd. for the promise to pay the price increase O 4) the absence of consensus
Kyle's Fabric Inc. agreed to supply 50 bolt of fabric to Fabric Stores of $50 per bolt. Shortly after the contract came into effect, the market price of this fabric rose to $75 per bolt so Kyle's Fabric Inc asked for more money. Fortunately, Fabric Stores Ltd. was agreeable to paying the new higher price. Why might Fabric Stores Ltd's promise to pay an additional $25 per bolt be unenforceable? 1) the inadequate consideration given to Kyle's Fabric Inc. for the promise to pay the price increase 2) the absence of consideration or a seal for the promise to pay the price increase 3) the inadequate consideration given to Fabric Stores Ltd. for the promise to pay the price increase O 4) the absence of consensus
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 15CQ
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