Business Law Seminar 3 - Consideration and ICLR

What is the definition of 'consideration' in contract law?

• A formal declaration of a contract

• A payment made for a service

• Something that has value in the eyes of the law, given in exchange for a promise​

• The intention to enter into a contract

Which of the following is NOT a characteristic of valid consideration?

• It must be requested by the promisor

• It must be past consideration

• It must move from the promisee

• It need not move to the promisor​

What is the 'benefit-detriment' approach in identifying consideration?

• Considering the economic benefits to both parties

• Analyzing whether it consists of a benefit to one party or a detriment to the other party​

• Determining the legal benefits involved

• Evaluating the monetary value of the consideration

In contract law, is a promise enforceable if it is not supported by consideration?

• Always

• Never

• Only if it's in writing

• It depends on the circumstances of the promise​

Which of the following is an example of an 'insufficient' consideration?

• A large sum of money for a contract

• A promise to do something

• A negligible sum of money eg, 10 cents

• A promise not to complain about something

Can moral obligations serve as sufficient consideration in contract law? Choose all that apply

• Yes, always

• No, they generally cannot​

• Only in family agreements

• Only if they involve monetary value

Is forbearance to sue considered valid consideration?

• Yes, if the party has a legal claim and believes it has a fair chance of success​

• No, never

• Only in commercial contracts

• Only if it involves a large sum of money

Does performing an existing legal or public duty count as sufficient consideration?

• Yes, always

• No, unless it goes beyond the duty​

• Only in government contracts

• Only if it's a contractual duty

What is the legal position on the intention to create legal relations in social and domestic agreements? Choose the BEST answer

• Always presumed to create legal relations

• Never creates legal relations

• Presumed not to create legal relations, but can be rebutted​ based on the facts

• Depends on the financial stakes involved

In business and commercial contexts, how is the intention to create legal relations typically treated? Choose the BEST answer

• Presumed to create legal relations​

• Never presumed to create legal relations

• Assessed based on the personal relationship between parties

• Determined solely by the contract's monetary value