Consideration

Question 1

What is consideration?

Answer 1

A contract is not enforceable without the element of consideration, it is the price of the promise

Question 2

What are the three rules of consideration?

Answer 2

• Consideration must move from promisee
• Consideration must not be past
• Consideration must be sufficient but not adequate

Question 3

Consideration must move from promisee further explanation

Answer 3

Promisee can only enforce the promise if the consideration came from them

Question 4

Consideration must not be past further explanation

Answer 4

The promise must not be made after the act is performed, the act must be as a result of the promise

Question 5

Consideration must be sufficient but not adequate further explanation

Answer 5

As long as there is some value it’s a binding agreement, doesn’t necessarily have to be a fair exchange