Business Law: Chapter 8

This is the main thing that distinguishes a legally binding agreement from other types of agreements

• Capacity

• Concealment

• Consideration

• Legality

Consideration is the exchange of benefits AND detriments by parties to an agreement.

• True

• False

This type of consideration is when you do not do something that you have a legal right to do.

• Benefit

• Forbearance

• Detriment

• Exchange

An example of a legal detriment would be ?

• A promise to pay $5000 for a vehicle

• A promise to sell your car for $5000

• A promise to pay $10,000 for land

• All of these

Consideration has 3 key characteristics. Which one in NOT one of them?

• Consideration can be unilateral

• Promises must involve the concept of bargained-for-exchange

• Something of value must be involved

• The benefits and detriments must be legal

A promise made in return for another promise, an act, or a promise not to act is called ?

• Detriment

• Benefit

• Bargained-for-exchange

• None of these

The law has very specific value requirements on consideration.

• True

• False

The value of goods and services involved in a contract do NOT have to be the same as the market value of the other goods and services.

• True

• False

When a court believes that the consideration in a contract is completely out of line, the contract is deemed what?

• Illegal

• Unconscionable

• Valid

• Gratuitous

Courts require that the consideration involved in an agreement be legal.

• True

• False