Question

John agrees to purchase a car from Donald. The Blue Book value of the car is $10,000, but the agreed upon price is $5,000 to be paid in 10 equal monthly installments of $500. As part of the deal, John also promises to give Donald a rock from the surface of the moon. This rock is property of the federal government and is kept in a vault at NASA in Houston. Provide your assessment of whether valid consideration has been given for this contract in terms of legality, adequacy, and possibility of performance.

Answer 1

The contract as mentioned is not a valid contract due to the following reasons:

1. The consideration made under the contract is unlawful as the rock from the moon is the property of NASA, so it cannot be the art of contract between John and Donald.

2. John lacks capacity to meet the commitment as mentioned in the contract. So, capacity as an essential element of a valid contract is not owned by John.

3. Due to the lack of ownership, the contract terms cannot be respected. So, the performance a mentioned in the contract can be delivered.

4. The contract terms are not legal as it involves a rock as property that is neither owned by John nor owned by Donald. So, it is not enforceable.

Above issues and lack of legality make this contract to be invalid and become null and void.