Making the right call in contract law

Is it crucial for a promise in contract law to involve a bargained-for exchange?

A. True

B. False

Answer:

B. False

In contract law, the concept of a bargained-for exchange is indeed crucial for a promise to be binding. However, in certain situations, this requirement may not apply. For instance, when considering Marnie's promise to reimburse Dana for caring for her dog Spot, the element of a bargained-for exchange is not met.

Specifically, as Dana had already taken action to rescue and care for Spot before any promise was made by Marnie, there was no negotiation or agreement between the parties prior to Dana's actions. Hence, in this scenario, the absence of a pre-agreed exchange results in Marnie's promise not being legally binding.

It is important to understand the nuances of contract law to make informed decisions regarding promises and agreements.