Which of the Following Is Not Valid Consideration

question 63

Multiple Choice

Which of the following is not valid consideration?

• A)The payment of money
• B)The provision of goods
• C)Undertaking an onerous obligation
• D)A vague promise

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Definitions:

Lease Period

The specified duration for which a lease agreement is effective, giving the lessee the right to use an asset.

Financial Lease Arrangement

A type of lease where the lessee pays for the use of an asset for most of its useful life and has rights similar to ownership.

Operating Lease

A contract that allows for the use of an asset but does not convey rights of ownership of the asset.

Owns the Asset

Refers to having legal title or right to possession of an asset, implying control over its use and the benefits it produces.