Indicate the correct statement about consideration.
A)Consideration is "the price for which the promise (or the act)of the other is bought."
B)In a unilateral contract,the performance of the promisee provides no consideration to the promisor.
C)In a bilateral contract,the exchange of promises does not provide consideration for both parties.
D)An altered course of action (e.g.,forbearance)is not good consideration.
E)The common law holds that consideration must be adequate to ensure that contracts are fair bargains.

Question

Quizplus · Accepted Answer

Consideration is defined as "the price for which the promise (or the act) of the other is bought." This means that each party in a contract must give something of value in order for the contract to be binding. Option B is incorrect because in a unilateral contract, the performance of the promisee (doing the requested act) is the consideration for the promisor's promise. Option C is incorrect because in a bilateral contract, the exchange of promises is the consideration for both parties. Option D is incorrect because an altered course of action, such as forbearance, can be good consideration if it is a benefit to the promisor. Option E is incorrect because the common law only requires consideration to exist, but it does not require that the consideration be fair or adequate.

Indicate the Correct Statement About Consideration