Consideration- Questions wrong Flashcards
1
Q
In determining whether the consideration requirement to form a contract has been satisfied, the consideration exchanged by the parties to the contract must be
A. Of approximately equal value. B. Legally sufficient. C. Exchanged simultaneously by the parties. D. Fair and reasonable under the circumstances.
A
B. Legally sufficient.
Consideration must be sufficient. However, the general rule is that any obligation of legal value and bargained-for is sufficient consideration.
Wrong Answer that I selected was
D. Fair and reasonable under the circumstances.
Consideration must be sufficient. However, the rule is that any obligation of legal value and bargained-for is sufficient consideration. It need not be of reasonably equal or even nearly equal value going both ways.