Sam promises to pay Dana $1,000 if Dana sells Sam their bicycle. Dana agrees and sells the bicycle to Sam. Is there valid consideration for Sam's promise?
Yes, because Sam's promise creates a unilateral contract based on Dana's future action.
No, because there is no exchange of promises between the parties.
Yes, Dana's act of selling the bicycle is consideration for Sam's promise.
No, because selling a bicycle is something Dana was already legally allowed to do.
Dana's act of selling the bicycle constitutes a bargained-for exchange, providing valid consideration to support Sam's promise. This mutual exchange of promises and actions fulfills the requirement for consideration in contract formation.
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