Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. A Ltd entered into a contract to build bigger premises for B Ltd at a cost of 1,000,000 to allow B Ltd to expand.

image text in transcribed

7. A Ltd entered into a contract to build bigger premises for B Ltd at a cost of 1,000,000 to allow B Ltd to expand. The work was due to be completed by 18 December 2020. A Ltd got into financial difficulties. To encourage A Ltd to finish the work on time, B Ltd agreed to pay a completion bonus of 200,000. Which of the following is accurate: (a) B Ltd's promise to pay the bonus is unenforceable as there was no offer and acceptance (b) B Ltd's promise to pay the bonus is unenforceable as there was no mutual intention to enter into a legally binding variation (C) B Ltd's promise to pay the bonus is unenforceable as A Ltd did not provide sufficient consideration in return (d) B Ltd's promise to pay the bonus is probably enforceable as it received consideration under the 'practical benefits' principle

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: Professor D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith

8th Edition

0808046241, 9780808046240

More Books

Students also viewed these Accounting questions

Question

What are your options besides a rote memory approach?

Answered: 1 week ago