A Clause in a Contract Which Provides That the Courts

question 20

Multiple Choice

A clause in a contract which provides that the courts may not be used to resolve any disputes between the parties is:

• A)void at common law.
• B)illegal at common law.
• C)referred to as a 'restraint of trade' clause.
• D)by its very nature incapable of being enforced by the courts.

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Definitions:

"The Answer"

Often used metaphorically to denote a solution or response that resolves a question or problem comprehensively.

Consideration

Something of value that is exchanged between parties in a contract, making it legally binding.

Illusory Promise

A situation in which a party appears to commit to something but really has not committed to anything. It is not a promise and thus not consideration.

Valid Consideration

Valid consideration in a contract represents something of value that is given by all parties involved, serving as the reason or inducement to enter into the contract.