CLEP Business Law

Category - Contracts

Diana was selling $500 tickets to her favorite charity's fundraiser. She asked her good friend, Donna, to purchase a ticket. Donna declined, stating that she could not afford the ticket price. Diana persisted. When Donna refused to purchase a ticket, Diana declared, "If you do not buy a ticket, I will never go shopping with you again!" Fearing the loss of her shopping buddy, Donna gave in and agreed to purchase a ticket. When Diana tried to collect the $500 from Donna, Donna refused to give Diana the money. If Diana sues Donna for the price of the ticket, who will win?
  1. Donna will win because she entered into the contract with Diana under duress.
  2. Donna will win because she never intended to buy a ticket. She just wanted to go shopping.
  3. Diana will win because she has an enforceable contract with Donna.
  4. Diana will win because the ticket is for a charitable event.
  5. Diana will win because Donna lied when she said she could not afford the ticket price.
Explanation
Answer: C. If Diana sues Donna for the price of the ticket, Diana will win because she has an enforceable contract with Donna. Although Diana threatened to stop shopping with Donna if Donna did not purchase the ticket, the threat was not of the nature that it left Donna with no alternative but to purchase the ticket. Further, if Diana did carry out the threat, it would not cause Donna irreparable injury.
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