In a Two-Party Contract,which Is True About Consideration

question 14

Multiple Choice

In a two-party contract,which is true about consideration?

• A) Only one party must suffer a legal detriment.
• B) Both parties must receive a benefit.
• C) Each party must suffer a legal detriment.
• D) Each party must either receive a benefit or suffer a legal detriment.

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Definitions:

Binding Vote

A vote that obligates the involved parties to adhere to the decision or outcome of that vote.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Pledge

A promise or agreement to do something or a tangible object given as a guarantee of the promisor's commitment.

Corporation's Property

Refers to the assets owned by a corporation, including real estate, equipment, and intellectual property.