Chapter 12, Problem 7BCP

Summary Introduction

Case summary:Owners of the two companies, namely LLC and BCM agreed to go into wood-pallet enterprises along with Ark-Mo, by allocating it 30 percent ownership interests in their future products. The owner of BCM, person L formed a new company BCR, but allocated only 5 % to Ark-Mo on which G, owner of LLC objected. However, the person L promised in a telephone conversation that Ark-Mo will receive 30 percent interest in future projects. Ark-Mo did not receive any interest and therefore, he filed a case for a breach of contract.

To find: The consideration to support the telephone deal.