BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Detailed explanation-1: -Consideration can be given by conferring the benefit or by incurring a detriment. Consideration never consists of a change in a party’s legal position as a result of the contract. Generally, what the parties give and get as consideration need to be of equal economic value. A promise must be binding to be consideration.
Detailed explanation-2: -Consideration is the bargained-for exchange of a “legal detriment” between the contracting parties. Agreeing to a “legal detriment” means agreeing to do something that one is not obligated to do or to agree to refrain from doing something that one has the legal right to do.
Detailed explanation-3: -Answer and Explanation: C. The consideration must be contemporaneous and a part of both parties’ understanding of the contract terms.