What is Consideration Element of Contracts - Contract Law

The video tutorial explains the concept of consideration in contracts, emphasizing that it involves a bargained-for exchange of value. It provides examples to illustrate how consideration works and discusses rules and exceptions, such as prior consideration and merchant exceptions under the Uniform Commercial Code (UCC). The tutorial highlights that consideration doesn't always have to be traditional value and can include foregoing a right. It also covers specific scenarios like non-compete clauses and firm offers by merchants.

What is the primary characteristic that makes a promise enforceable as a contract?

• It is made verbally.

• It involves a gift.

• It includes a bargained-for exchange of value.

• It is written down.

Which of the following is an example of consideration that does not involve a tangible exchange?

• Receiving a bonus at work.

• Promising to give a gift.

• Paying someone to mow your lawn.

• Forgoing the right to mow your lawn for a fee.

Why is prior consideration generally not sufficient in contract modifications?

• Because it is not documented.

• Because it does not involve a new exchange of value.

• Because it is not agreed upon by both parties.

• Because it is not legally binding.

Under what condition can a merchant's offer be enforceable without consideration according to the UCC?

• If the offer is put in writing and states it will not be revoked for a certain period.

• If the offer is made verbally.

• If the offer is for a service.

• If the offer is accepted immediately.

What is a firm offer by a merchant?

• An offer that can be revoked at any time.

• An offer that is enforceable without consideration.

• An offer that requires a deposit.

• An offer that is only valid for a day.