Multiple choice

Some, all or none of the following statements are correct, answer using the code

  1. Consideration is the recompense given by the party contracting with the other

  2. If the promised act has been done before the agreement is made, it is past consideration and past consideration is no consideration

  3. Consideration should be something which has some value in law

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All three statements are correct. Consideration is indeed the recompense given by the party contracting with the other (it's the price paid for the promise). Past consideration is generally no consideration because it doesn't involve the element of bargain - if the act was done before the agreement, it cannot serve as consideration. And consideration must have some value in the eyes of the law, though it need not be adequate. The doctrine of consideration requires a bargained-for exchange between parties.

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