Costello hired Sagan to drive his racing car in a race. Sagan\'s friend Gideon p
ID: 452630 • Letter: C
Question
Costello hired Sagan to drive his racing car in a race. Sagan's friend Gideon promised to pay Sagan $5,000 if she won the race. Sagan won the race. , but Gideon refused to pay the $5,000. Gideon contended that no legally binding contract had been formed because he had received no consideration from Sagan in exchange for his promise to pay the $5,000. Saga sued Gideon for breach of contract, arguing that winning the race was the consideration given in exchange for Gideon's promise to pay the $5,000.
Explanation / Answer
Gideson has to pay $5000 to Sagan. a oral statement also be considered as agreement and for this no proofs or documents are required. as he promised that if he own the race he will pay, he has to pay the same to Sagan. other wise Sagan may legally proceed to collect the amount.