Exceptions to Consideration in Contract Law

The video tutorial discusses two notable exceptions to the rule that a contract must have present consideration to be enforceable: option contracts and firm offers. Option contracts allow a party to purchase an asset at a set price within a specific time frame, often without consideration, yet remain enforceable. Firm offers, relevant to merchants under the UCC, involve a promise to keep an offer open for a certain period without consideration, and are also enforceable. These exceptions highlight situations where contracts can be legally binding without present consideration.

What new insight or understanding did you gain from this video?

Evaluate responses using AI:

OFF