BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Past consideration.
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Performance of an existing contractual duty owed to the other contracting party.
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Part payment of an existing debt.
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Performance of an existing public duty imposed by law.
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All of the above are correct.
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Detailed explanation-1: -A contract may lack consideration if any of the following is true: The promise cannot legally (or practically) be offered. Offer is made for something that already has been done ("past consideration") and therefore cannot be bargained for.
Detailed explanation-2: -Under Bargain-for-Exchange theory of consideration, adequate consideration exists when a promisor makes a promise in return for something else. Here, the essential condition is that the promisor was given something specifically to induce the promise being made.
Detailed explanation-3: -The rule is that consideration must be sufficient but need not be adequate. What this means is that the law requires the parties to have entered into a bargain where each side has provided something of value that the courts can see.