Consideration in Contract Law: Definition, Elements, and Types

Question 1

Which of the following is **NOT** an element of consideration?

Accepted Answer

It must be in the form of a promise

Answer

It must be bargained for

Answer

It must have economic value

Answer

It must be legal

Question 2

Which of the following statements about mutuality of consideration is true?

Accepted Answer

Both parties to a contract must receive consideration

Answer

Each party's consideration must be equal in value

Answer

The consideration must be exchanged simultaneously

Answer

Mutuality of consideration is not required for a valid contract

Question 3

Which of the following is an example of past consideration?

Accepted Answer

A promise to pay for services that have already been performed

Answer

A promise to pay for goods that have already been delivered

Answer

A promise to pay for goods that will be delivered in the future

Answer

A promise to pay for services that will be performed in the future

Question 4

Which of the following statements about consideration in unilateral contracts is true?

Accepted Answer

The acceptance must be supported by consideration

Answer

The offer must be supported by consideration

Answer

Both the offer and the acceptance must be supported by consideration

Answer

Consideration is not required for a unilateral contract

Question 5

Which of the following is the most likely outcome if a contract is found to lack consideration?

Accepted Answer

The contract will be unenforceable

Answer

The contract will be void

Answer

The contract will be voidable

Answer

The contract will be valid

Question 6

Historically, the role of consideration in contract law has evolved. Which of the following best describes this shift?

Accepted Answer

From enforcing contracts based on moral obligation to requiring an exchange

Answer

From focusing on the promisor's benefit to the promisee's detriment

Answer

From excluding past consideration to including it

Answer

From requiring mutuality of consideration to allowing unilateral contracts

Question 7

Which of the following is NOT an essential element of valid consideration?

Accepted Answer

Adequacy

Answer

Legality

Answer

Bargained for

Answer

Mutuality of obligation

Question 8

A promise to do something that the promisor is already legally required to do is:

Accepted Answer

Void consideration

Answer

Valid consideration

Answer

Adequate consideration

Answer

Bargained-for consideration

Question 9

The doctrine of promissory estoppel prevents the promisor from relying on the defense of lack of consideration when:

Accepted Answer

The promisee has reasonably relied on the promise to their detriment

Answer

The promise is in writing

Answer

The promise is supported by past consideration

Answer

The promise is made under seal

Question 10

Which of the following is NOT a type of consideration?

Accepted Answer

Moral obligation

Answer

Benefit to the promisor

Answer

Detriment to the promisee

Answer

Past performance

Question 11

What is the consequence of using illegal or immoral acts as consideration in a contract?

Accepted Answer

The contract is void from the beginning.

Answer

The contract is valid if both parties are unaware of the illegality.

Answer

The contract is enforceable if the illegal act does not directly relate to the performance of the contract.

Answer

The contract is voidable at the option of the innocent party.

Question 12

In contract law, which element is essential for consideration to be legally binding?

Accepted Answer

A legal detriment experienced by the promisee

Answer

A promise of future performance

Answer

A moral obligation of the promisor

Answer

A benefit gained by the promisor

Question 13

How has the historical evolution of consideration shaped its current role in contract law?

Accepted Answer

Understanding the historical evolution of consideration illuminates its role in establishing a balanced exchange of value in contracts.

Answer

Consideration has consistently served as a cornerstone of contract law throughout history.

Answer

The definition and significance of consideration have remained static over time.

Question 14

Which scenario illustrates a promise that lacks consideration and is thus not legally enforceable?

Accepted Answer

E promises to pay F $50 for taking a walk to the park.

Answer

A offers to pay B $100 for washing A's car.

Answer

C promises to give D her old bicycle for delivering groceries.

Answer

G promises to give H her car if H promises to pay her $1,000.

Question 15

Why is a promise to make a gift generally unenforceable at law?

Accepted Answer

It lacks consideration.

Answer

It lacks acceptance.

Answer

It lacks an offer.

Answer

It lacks capacity.

Question 16

In a unilateral contract, consideration is exchanged for:

Accepted Answer

Performance

Answer

Acceptance

Answer

Consideration

Answer

Promise

Question 17

Which of the following is a valid defense to a contract for lack of consideration?

Accepted Answer

Pre-existing duty

Answer

Mistake

Answer

Unconscionability

Answer

Illegality

Question 18

Which of the following statements about consideration is accurate?

Accepted Answer

Consideration can be anything of value, including a promise.

Answer

Consideration can never be past performance.

Answer

Consideration must always be in the form of money.

Question 19

In which of the following scenarios is there a bargained-for exchange?

Accepted Answer

A promise to pay for a service that has not yet been performed.

Answer

A promise to make a gift to a friend.

Answer

A promise to pay a debt that is already owed.

Question 20

Which of the following is NOT a recognized exception to the requirement of consideration?

Accepted Answer

Moral obligation

Answer

Unjust enrichment

Answer

Modification of an existing contract

Answer

Promissory estoppel

Question 21

Which of the following is NOT considered an essential element of valid consideration?

Accepted Answer

A mere promise to do something in the future that is not legally binding

Answer

Legal benefit to the promisor

Answer

Bargained-for exchange of value

Answer

Mutuality of obligation (exchange of promises)

Question 22

Which of the following does NOT constitute valid consideration in contract law?

Accepted Answer

Past consideration (a benefit conferred before the promise was made)

Answer

Transfer of property rights

Answer

Performance of services

Answer

A promise to pay money

Question 23

In a bilateral contract, the parties exchange:

Accepted Answer

Legally enforceable promises

Answer

Money

Answer

Goods

Answer

Consideration

Question 24

An example of an illusory promise would be:

Accepted Answer

A promise to buy a car if the buyer desires

Answer

A promise to pay $100 for a book

Answer

A promise to work for one year

Answer

A promise to sell a house for $500,000

Question 25

A primary purpose of consideration in contract law is to:

Accepted Answer

Ensure that each party receives something of legal value in exchange for their promise

Answer

Prevent fraud

Answer

Create a legally enforceable agreement

Question 26

Which of the following is NOT an essential element of consideration in a contract?

Accepted Answer

Formalistic intent

Answer

Legal detriment

Answer

Bargained-for exchange

Answer

Mutual benefit

Question 27

What is the primary purpose of consideration in contract formation?

Accepted Answer

To ensure the enforceability of the agreement

Answer

To prevent fraud and protect the weaker party

Answer

To define the scope of the contract

Answer

To establish the parties' intent

Question 28

In which of the following situations is there valid consideration?

Accepted Answer

Alice promises to pay Bob $100 if Bob walks to the store

Answer

Alice promises to pay Bob $100 to love her

Answer

Alice promises to pay Bob $100 for a service that Bob has already performed

Answer

Alice promises to pay Bob $100 if Bob does not commit a crime

Question 29

Which of the following is a criticism of the doctrine of consideration?

Accepted Answer

It is considered too rigid and inflexible, potentially leading to unjust outcomes

Answer

It ensures that contracts are fair and equitable

Answer

It promotes economic efficiency

Answer

It protects the parties to a contract

Question 30

What is the key distinction between legal consideration and moral consideration?

Accepted Answer

Legal consideration can be enforced in court, whereas moral consideration cannot

Answer

Legal consideration must be in writing, while moral consideration can be oral

Answer

Legal consideration is always adequate, while moral consideration is not

Question 31

Which of the following is an example of a promise made in exchange for past consideration?

Accepted Answer

Alice promises to pay Bob for services that Bob rendered last week

Answer

Alice promises to pay Bob for services that Bob will render next week

Answer

Alice promises to pay Bob $100 if Bob refrains from smoking

Question 32

What is the difference between adequate consideration and fair consideration?

Accepted Answer

Adequate consideration is any legal detriment, regardless of its value, while fair consideration is a fair exchange for the promise

Answer

Adequate consideration must be in writing, while fair consideration can be oral

Question 33

Which of the following is a potential exception to the requirement of consideration?

Accepted Answer

Estoppel

Answer

Fraud

Answer

Unconscionability

Answer

Mistake of law

Question 34

What is the primary purpose of the doctrine of promissory estoppel?

Accepted Answer

To prevent injustice by enforcing promises that were made without consideration, based on reliance

Answer

To encourage parties to make written contracts

Answer

To provide a remedy for breach of contract

Question 35

Which of the following is NOT an essential element of consideration?

Accepted Answer

Mutuality of obligation

Answer

Past consideration

Answer

Bargained-for exchange

Answer

Legal detriment

Question 36

A promise to pay for a debt that has already been incurred is considered:

Accepted Answer

Past consideration

Answer

Insufficient consideration

Answer

Adequate consideration

Answer

Good consideration

Question 37

Which of the following is NOT a type of executory consideration?

Accepted Answer

Money

Answer

Performance of an act

Answer

Promise to perform an act in the future

Answer

Transfer of property

Question 38

Promissory estoppel is a valid defense to a claim for breach of contract based on:

Accepted Answer

Lack of consideration

Answer

Mutual mistake

Answer

Impossibility of performance

Answer

Unconscionability

Question 39

Which of the following agreements is most likely to be unenforceable for lack of consideration?

Accepted Answer

A promise by a parent to pay for their adult child's college education

Answer

A contract to purchase a house for a fixed price

Answer

A promise by a neighbor to mow your lawn in exchange for payment

Question 40

Which of the following is NOT a valid form of consideration for a unilateral contract?

Accepted Answer

Past performance

Answer

Performance of an act requested by the offeror

Answer

Transfer of property requested by the offeror

Answer

Promise to perform an act requested by the offeror

Question 41

The concept of consideration is closely related to which of the following legal doctrines?

Accepted Answer

Equitable estoppel

Answer

Res judicata

Answer

Subrogation

Answer

Statute of frauds

Question 42

Which of the following statements about consideration is accurate?

Accepted Answer

It must be bargained-for, not merely incidental to the contract

Answer

It can be anything of value, including past favors

Answer

It must always be of equal value to the performance promised

Question 43

A promise to pay for services that have already been rendered:

Accepted Answer

Constitutes past consideration and is generally insufficient to support a legally enforceable contract

Answer

Is enforceable if it is in writing

Answer

Is considered adequate consideration if the services were valuable

Answer

Is always legally binding, regardless of the timing of the services

Question 44

In contract law, what is the BEST definition of 'consideration'?

Accepted Answer

An exchange of something of legal value between parties, where each promise is made in return for the other.

Answer

The monetary value paid for a good or service.

Answer

The parties' intention to create a legally binding agreement.

Answer

A formal written agreement signed by both parties.

Question 45

What are the two essential components of valid consideration?

Accepted Answer

Legal value and a bargained-for exchange.

Answer

A written document and signatures.

Answer

Mutual agreement and legal capacity.

Answer

An offer and acceptance.

Question 46

Which of these does NOT qualify as 'legal value' for the purpose of consideration?

Accepted Answer

A promise to perform an action the promisor is already legally obligated to do.

Answer

A promise to provide a service.

Answer

A promise to abstain from pursuing legal action.

Answer

A promise to pay a sum of money.

Question 47

If someone promises to pay a debt that is no longer legally enforceable due to the statute of limitations, is this considered valid consideration?

Accepted Answer

Yes, because the promisor is giving up a legal right by agreeing to pay.

Answer

No, because there's no legal value in paying a debt that's not legally owed.

Answer

Only if the amount of the debt is significant.

Question 48

Which example BEST illustrates a 'pre-existing duty'?

Accepted Answer

A police officer promising to arrest a suspect they are already obligated to apprehend.

Answer

A contractor promising to build a house according to the agreed-upon blueprints.

Answer

A business owner agreeing to pay a supplier for delivered goods.

Answer

A friend offering to assist a neighbor with moving.

Question 49

What is the PRIMARY importance of the 'bargained-for exchange' element of consideration?

Accepted Answer

It ensures that each party's promise is made in direct response to the other's promise, preventing gratuitous promises.

Answer

It confirms that the contract is written and signed by both parties.

Answer

It confirms the parties have the legal ability to enter a contract.

Question 50

Which of the following is NOT considered a valid form of consideration?

Accepted Answer

A promise to engage in an illegal activity.

Answer

A promise to refrain from taking legal action.

Answer

A promise to provide a service.

Answer

A promise to pay a sum of money.

Question 51

What is the legal consequence of a contract lacking adequate consideration?

Accepted Answer

The contract is generally unenforceable in a court of law.

Answer

The contract is automatically voided by the court.

Answer

The contract remains enforceable, but the party who did not provide consideration can seek damages.

Answer

The contract can be voided at the option of the party who did not receive adequate consideration.

Question 52

A construction company agrees to build a house for a homeowner, who in turn promises to pay for the construction. What constitutes the consideration in this agreement?

Accepted Answer

The homeowner's promise to pay is consideration for the construction company's promise to build, and vice versa.

Answer

Only the construction company's promise to build is considered consideration.

Question 53

A student promises to study harder in exchange for the professor's promise to give a higher grade. Would this agreement be considered a valid contract?

Accepted Answer

No, because the student's promise is not considered legally sufficient consideration.

Answer

Yes, because both parties have made a promise.

Answer

Yes, because the student's promise is valuable to the professor.