Applied Law: Jud Wheelers Scenario and Gerards Scenario - Essay Example

In the case of Gerard and Kids Care, there is past consideration. This means that there is a promise made in return for something, which has already occurred. The promise to donate the receipts to the charity organization constitutes insufficient consideration and cannot be enforceable (Adams, 2004).
The formation of a contract takes place when what one party offers is accepted by the other party to the contract. Krause's cannot avoid the contract after learning that they could have sold the piece of land at a higher price than the price, which Jud offered.

This is because they have already accepted the offer. Acceptance of the offer means that the Krauses bound themselves legally to the terms of the contract. Therefore, avoiding the contract could constitute to breach of contract. Krause's can only withdraw from the offer if they had not accepted the offer (Bhana, Bonthuys & Nortje, 2009). Jud can be held to pay the typewritten amount since a contract constitutes a legal agreement in writing between the two parties to a contract. This means that Jud is bound to pay the typewritten amount rather than the offered amount (Bhana, Bonthuys & Nortje, 2009).