Author Question: What is consideration and what are the two basic elements of ... (Read 82 times)

RYAN BANYAN · **on:** Jun 24, 2018

What is consideration and what are the two basic elements of consideration?

Question 2

If a party does not fulfill their obligations as set forth in a sales contract, it is known as:
A) non-payment.
B) termination.
C) non-performance.
D) all of the above.

shailee · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Consideration is the inducement, price, or promise that causes a person to enter into a contract and forms the basis for the parties' exchange. Contracts must be a two-way street. If one side gets all the benefit and the other side gets nothing, then an agreement lacks consideration and is not an enforceable contract. Consideration is proof that the parties intended to be bound to their promises. There are two basic elements of consideration: value and bargained-for exchange.

Answer to Question 2

C