Which statement most accurately describes the requirement of consideration?
A) As long as one party provides consideration,the promise will be binding.
B) All promises are legally binding,whether or not consideration is provided.
C) Consideration must be fair and adequate.
D) Consideration may take the form of a promise in exchange for a promise.

Question

Quizplus · Accepted Answer

Consideration is a fundamental component of a contract, and it refers to something of value that is exchanged between the parties. This can include a promise to do something, a promise to refrain from doing something, or the exchange of goods, services, or money. The key aspect is that each party must provide something of value to the other, which can indeed be a promise in exchange for a promise, making option D correct. Options A, B, and C are incorrect because consideration must be provided by both parties (not just one), not all promises are legally binding without consideration, and the law does not require consideration to be fair or adequate, only that it exists.

Which Statement Most Accurately Describes the Requirement of Consideration