Which of the Following Is True About an Illegal Consideration

question 42

Multiple Choice

Which of the following is true about an illegal consideration?

• A)Contract requires that either both parties suffer legal detriment.
• B)Contract requires that the promisor receives a legal benefit.
• C)Contract requires that the promisee suffer a legal detriment.
• D)Contracts based on illegal consideration are void.

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Definitions:

Voidable Title

indicates that a title transfer may be nullified if the buyer discovers the seller did not have ownership rights or authority to sell the item in question.

Good-Faith Purchase

Buying property without knowledge of any existing claims or rights of others, believing the transaction to be honest and legal.

Goods-In-Bailment Contract

A contract where personal property or goods are transferred temporarily into the custody of another for a specific purpose but ownership remains with the bailor.

Simple Delivery Contract

A type of contract in which purchased goods are transferred to a buyer from a seller either at the time of the sale or sometime later by the seller’s delivery.