Frank and Maddie are saving to buy a house, so they move in with Frank's parents. They live rent-free in Frank's parents' house, in exchange for their promise to undertake light housework and to cook three meals per week. After a month, neither Frank nor Maddie have done any housework or cooking. Frank's parents want to sue them for the lost rent. What approach would a court take to determine whether there is a legally binding agreement between the parties?

Select one:

a.

The arrangement is not sufficiently serious to form the subject of a contract and a court would refuse to hear the case.

b.

A court would consider whether the work required to complete the jobs is of adequate value in exchange for the free rent. The value of the jobs needs to be adequate as compared to the free rent, otherwise there is no consideration.

c.

Because they are close members of a family, the presumption is that there is no intention to be bound by the promises, but this presumption may be rebutted after taking into account all the circumstances.

d.

This case is straightforward. The court would find that, as there is a family relationship here, there can never be an intention to be legally bound.