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.

Question

Quizplus · Accepted Answer

Consideration is defined as something of value that is given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances. It is essentially "the price for which the promise of the other is bought," meaning each party must provide something of value (consideration) for the contract to be valid.

Indicate the Correct Statement About Consideration