Indicate the Correct Statement About Consideration

question 174

Multiple Choice

Indicate the correct statement about consideration.

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

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Definitions:

Exponential

A mathematical function or growth pattern describing a quantity that increases at a rate proportional to its current value.

Sternberg

Refers to Robert Sternberg, a psychologist known for his theory on intelligence and creativity, including the triarchic theory of intelligence.

Analytical

The ability to critically evaluate information or situations, often involving breaking down complex problems into smaller, more manageable parts.

Acquire Knowledge

The process of learning or gaining information, insights, or skills through study, experience, or instruction.