Indicate the Correct Statement About Consideration

question 21

Multiple Choice

Indicate the correct statement about consideration.

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

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Definitions:

Future

A term referring to events that have not yet occurred or the time period in which these events will happen.

Market

A place or system where buyers and sellers interact to exchange goods, services, or information, determining prices through supply and demand.

Competitive Market Economy

An economic system where businesses compete freely without undue interference, allowing supply and demand to determine prices and outputs.

Entrepreneur

An individual who organizes and operates a business, taking on greater than normal financial risks in order to do so.