Question

Last night you invited your friend (who is also a classmate in CMLW 2201) to go to a

movie with you. You both agreed to meet at the movie theatre. When you arrived you

bought two tickets and waited for your friend but they never showed up? The next day

you asked your friend to pay you for the wasted movie ticket. Your friend said “Forget it.

We don’t have a contract!!” Is your friend correct? Why or why not?

Answer 1

In this case friend is correct and there is no valid contract between two parties.

A Contract is a legal agreement between two competent parties that promises a certain performance in exchange for a certain consideration. Characteristics of valid contract are competent parties, legal purpose, offer and acceptance ( agreement ) and Consideration. A valid contract involves consideration. Consideration is a thing of value exchange for the performance promised in the contract. In this case no consideration has been mentioned. For a valid consideration both parties are getting something that they have agreed to, usually something of value for something of value. Example, A agrees to sell his bicycle to B and in return B will pay him an agreed amount. There is no valid consideration in this situation and hence there is no contract.