Asked by Le Nguyen Han Han (K13_DN) on Jun 17, 2024
Verified
Which of the following is true of consideration?
A) It does not need to be exchanged.
B) It distinguishes a contract from a gift.
C) It is not required for a valid contract to be formed.
D) All of these choices are correct.
Consideration
Something of value that is promised, given, or done that persuades a party to enter into a contract, making the contract legally enforceable.
Contract
A legally binding agreement between two or more parties that is enforceable by law.
Gift
A voluntary transfer of property or funds from one person to another without expectation of payment or compensation.
- Understand the principle of consideration and its importance in determining the validity of a contract.
Verified Answer
(L
(K12_HN) La Thi Hai YenJun 18, 2024
Final Answer :
B
Explanation :
Consideration is what distinguishes a contract from a gift. In a contract, something of value must be exchanged between the parties, which is not the case with a gift. This exchange of value is what is referred to as consideration.
Learning Objectives
- Understand the principle of consideration and its importance in determining the validity of a contract.