A voting agreement is irrevocable if the agreement states it is irrevocable.

A voting agreement is irrevocable if the agreement states it is irrevocable.

• A. Only if there is consideration
• B. False
• C. True
• D. Only if directors

Answer: (C)

The idea being tested is how an express promise affects revocability in a voting agreement. In contract law, a party’s promise not to revoke is enforceable only if there’s consideration supporting that promise. When a voting agreement explicitly declares that it is irrevocable, that language itself signals the parties’ intent not to withdraw or alter the agreement for the agreed period, and once there is valid consideration backing the overall contract, the irrevocable term governs. Practically, the explicit statement of irrevocability is what makes the agreement binding in that sense, which is why the statement is treated as true. In other words, the contract can be irrevocable if the parties explicitly promise irrevocability and the rest of the contract provides the necessary consideration, and this is why the correct understanding is that the voting agreement is irrevocable when it states it is irrevocable.

The idea being tested is how an express promise affects revocability in a voting agreement. In contract law, a party’s promise not to revoke is enforceable only if there’s consideration supporting that promise. When a voting agreement explicitly declares that it is irrevocable, that language itself signals the parties’ intent not to withdraw or alter the agreement for the agreed period, and once there is valid consideration backing the overall contract, the irrevocable term governs. Practically, the explicit statement of irrevocability is what makes the agreement binding in that sense, which is why the statement is treated as true.

In other words, the contract can be irrevocable if the parties explicitly promise irrevocability and the rest of the contract provides the necessary consideration, and this is why the correct understanding is that the voting agreement is irrevocable when it states it is irrevocable.