Crucial Exams

Multistate Bar Examination Practice Question

A local advertising agency agreed to help a startup company launch its first product, including creating a marketing plan and managing its social media channels for three months. In return, the startup company promised to pay $15,000. Subsequently, the owner of the startup company decided not to proceed with the advertising campaign because they believed it would not generate enough sales. The advertising agency had already invested time into developing the marketing strategy. If the agency sues to enforce the contract, can the agreement be upheld?

  • No, because the agreement was not performed in full by either party yet.

  • Yes, because the advertising agency began work on the campaign before the startup withdrew.

  • No, because the startup company determined that the advertising campaign would not generate sufficient sales.

  • Yes, because the promise to pay $15,000 in exchange for services is considered valid consideration.

Multistate Bar Examination
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