Consideration in Contract Law: Definition, Types, and Adequacy

Question 1

Which of the following is not a valid type of consideration?

Accepted Answer

Past consideration, provided it is in writing

Answer

A promise to perform a future act

Answer

The transfer of an existing property right

Answer

A promise to refrain from doing something

Question 2

Which of the following is an example of good consideration?

Accepted Answer

A promise to pay £100 for a car

Answer

A promise to wash someone's car for free

Answer

A promise to marry someone

Answer

A promise to give someone a gift without expecting anything in return

Question 3

Which of the following statements about consideration is correct?

Accepted Answer

It can be anything that the parties agree is valuable, as long as it is not illegal

Answer

It must be of value to both parties to the contract

Answer

It must be in writing

Answer

It must be executed

Question 4

Which of the following statements about adequacy of consideration is correct?

Accepted Answer

The courts will inquire into the adequacy of consideration if it is grossly inadequate

Answer

The courts will not inquire into the adequacy of consideration unless it is nominal

Answer

The courts will only inquire into the adequacy of consideration if there is fraud or duress

Answer

The adequacy of consideration is a matter of law for the courts to decide

Question 5

Which of the following is not a relevant factor in determining the adequacy of consideration?

Accepted Answer

The parties' ages

Answer

The value of the subject matter of the contract

Answer

The parties' intentions

Answer

The market value of the consideration

Question 6

In contract law, the principle of adequacy of consideration states that:

Accepted Answer

Consideration must be sufficient, but it need not be adequate.

Answer

Consideration must be of equal or greater value to the promise given.

Answer

Consideration must be in the form of money or other tangible property.

Question 7

In unilateral contracts, what is the significance of consideration? Provide specific examples to support your explanation.

Accepted Answer

Consideration is the foundation for enforcing unilateral contracts.

Answer

Consideration in unilateral contracts always involves a promise.

Answer

Past consideration is valid in unilateral contracts.

Question 8

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

Accepted Answer

It must be something the promisee is legally obligated to do.

Answer

It must be of some value to the promisor.

Answer

It must be something the promisee has bargained for.

Answer

It must be sufficient.

Question 9

Which type of consideration is promised before any performance has occurred?

Accepted Answer

Executory consideration

Answer

Executed consideration

Answer

Past consideration

Answer

Concurrent consideration

Question 10

What is the general rule regarding the adequacy of consideration?

Accepted Answer

Consideration need not be of equal or greater value to the promise.

Answer

Consideration must be of equal or greater value to the promise.

Answer

Consideration must be of nominal value.

Answer

Consideration must be of a certain minimum value.

Question 11

What is the legal effect of past consideration?

Accepted Answer

It cannot create a legally binding contract.

Answer

It can create a legally binding contract.

Answer

It can create a voidable contract.

Answer

It can create an unenforceable contract.

Question 12

Which of the following is a benefit of using a written contract?

Accepted Answer

It provides tangible evidence of the terms of the agreement.

Answer

It is difficult to modify.

Answer

It is not legally binding.

Answer

It is more expensive than an oral contract.

Question 13

What is the distinction between an express contract and an implied contract?

Accepted Answer

An express contract is created by the parties' explicit words or actions, while an implied contract is created by the law.

Answer

An express contract is in writing, while an implied contract is oral.

Answer

An express contract is more formal than an implied contract.

Answer

An implied contract is more binding than an express contract.

Question 14

What is the purpose of the Statute of Frauds?

Accepted Answer

To prevent fraud and perjury.

Answer

To make it easier to prove the terms of a contract.

Answer

To make it more difficult to enter into contracts.

Answer

To reduce the number of lawsuits.

Question 15

Which of the following types of contracts is NOT required to be in writing under the Statute of Frauds?

Accepted Answer

Contracts for the sale of personal property

Answer

Contracts for the sale of land

Answer

Contracts for the sale of goods over a certain value

Answer

Contracts for the performance of services that cannot be completed within one year

Question 16

Which of the following is NOT considered valid consideration in contract law?

Accepted Answer

A promise to perform an existing legal obligation

Answer

A promise to perform a future act

Answer

The transfer of property

Answer

The provision of services

Question 17

When is past consideration generally insufficient to support a valid contract?

Accepted Answer

When it is provided after the promisor has made their promise

Answer

When it is specifically requested by the promisor

Answer

When it is provided at the promisor's request and in anticipation of a future promise

Answer

When it is unrelated to the promise

Question 18

Which legal doctrine ensures that parties to a contract have exchanged something of value?

Accepted Answer

Doctrine of consideration

Answer

Doctrine of estoppel

Answer

Doctrine of mutuality of obligations

Answer

Doctrine of privity of contract

Question 19

In order to satisfy the bargain theory of consideration, which of the following must be present?

Accepted Answer

A promise and a corresponding detriment suffered by the promisee

Answer

A promise and a corresponding benefit received by the promisor

Answer

An exchange of promises

Answer

An exchange of goods or services

Question 20

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

Accepted Answer

Quid pro quo contract

Answer

Promissory estoppel

Answer

Implied-in-fact contract

Answer

Unjust enrichment

Question 21

In the context of consideration, which of the following terms refers to the performance of an obligation that already exists under law or a prior contract?

Accepted Answer

Pre-existing duty

Answer

Precedent condition

Answer

Subsequent condition

Answer

Collateral promise

Question 22

Which of the following statements accurately describes the legal effect of a contract without consideration?

Accepted Answer

It is void and unenforceable

Answer

It is valid and enforceable

Answer

It is voidable at the option of the party without consideration

Answer

It is partially enforceable