Indicate the Correct Statement About Consideration

question 78

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

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Definitions:

Procedure

A set method or way of doing something, especially in a systematic or established form.

Formalization

The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated in an organization.

Bureaucratic Aspects

Features relating to the system of administration characterized by strict policies, procedures, and hierarchy intended for efficient organization.

Simple Design

A configuration involving one or two ways of specializing individuals and units.