BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Exchange Money
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Barter money
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Price
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Reward
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Detailed explanation-1: -Consideration in a contract of sale has to be in the form of money. Barter of exchange is used when the consideration is in the form of goods. This method was used before the prevalence of currency. For a sale to exist, goods have to be sold for a given amount of money, or price.
Detailed explanation-2: -One such essential of a contract is ‘consideration’. This term has been defined under Section 2(d) as willingness or abstinence of the promisee to do something or making a promise to do so, at the instance of the promisor.
Detailed explanation-3: -There are four types of mutual consideration: quid pro quo, tit for tat, win-win, and lose-lose. Each type has its own pros and cons. Quid pro quo is the most common type of mutual consideration. It is when each party involved gets something in return for what they give.