Rachel wants to attend Harvard University It has been her li

Rachel wants to attend Harvard University. It has been her lifelong dream to attend the prestigious school. When Rachel received a Letter of Admission, she took out several loans to fund her college education. Rachel’s grandfather became aware of the loans and offered to pay off the loans when Rachel graduated provided that she would not marry or have children until she graduated. Rachel, in return, agreed to pay for her other expenses including books, housing and food. During Rachel’s junior year at Harvard, she became engaged.

Define consideration.

What is the consideration in this contract?

Is the contract between Rachel and her grandfather valid? Why or why not?

Can Rachel’s grandfather refuse to pay the remainder of Rachel’s tuition? Why or why not?

Solution

Explanation:

-Consideration:

Consideration in contract is referred to be exchange of value for any item or service in which both parties should be legally binding to exchange to make contract valid. In case one of the parties fails to offer consideration, contract will be void.

- In this contract consideration is to pay off loans of Rachel and Rachel agreed to not to have marry or to have children during her academic carrier.

- Yes contract is valid as Rachel and her grandfather has legal binding to consideration in fulfilling duties of their own.

- Rachel’s grandfather cannot refuse to pay for her tuition as promise is meant to not getting married or being pregnant and Rachel is just engaged which is not problem for contract.