Principles of Consideration in Contracts Quiz

Consideration in a contract does not have to be tangible; it can involve intangible elements.

Consideration is the legal term for something given up in exchange for a promise.

In consideration, 'bargained for' means the parties have negotiated and exchanged something of value.

Moral obligation is generally not considered a valid form of consideration in a contract.

Courts generally do not concern themselves with the adequacy of consideration in a contract.

In a bilateral contract, consideration is typically exchanged simultaneously with the promise.

Fair market value is not necessarily a requirement for valid consideration in a contract.

Past consideration is usually not valid except when it involves a charitable act.

Past consideration involves exchanging a promise for services already performed in the past.

Consideration must not be illusory; it must be a real and binding obligation.

Nominal consideration involves a token amount exchanged for a more significant promise.

A promise to refrain from exercising a legal right is an example of valid consideration in a contract.