Likewise, Gale’s willingness to have Branch signs a document in combination with her later intention to buy Tinman demonstrates her intent to form a contract. Thus, the mutual assent element is satisfied. Consideration is the final element to be satisfied. It is clear that Branch is giving Gale consideration because he is giving her 120 days to buy his horse. However, Gale’s consideration to Branch is less clear. Branch acknowledges in his letter that Gale has given him “valuable consideration”. However, this consideration seems nominal, without any really value being given to Branch. Although this may be the case, option contracts do not require that the real consideration be given. Rather, options contracts only require that the consideration is sincere. In this case, Branch’s writing for “valuable consideration” appears to be sincere since he intends to give Gale the option of buying
Likewise, Gale’s willingness to have Branch signs a document in combination with her later intention to buy Tinman demonstrates her intent to form a contract. Thus, the mutual assent element is satisfied. Consideration is the final element to be satisfied. It is clear that Branch is giving Gale consideration because he is giving her 120 days to buy his horse. However, Gale’s consideration to Branch is less clear. Branch acknowledges in his letter that Gale has given him “valuable consideration”. However, this consideration seems nominal, without any really value being given to Branch. Although this may be the case, option contracts do not require that the real consideration be given. Rather, options contracts only require that the consideration is sincere. In this case, Branch’s writing for “valuable consideration” appears to be sincere since he intends to give Gale the option of buying