Asked by Charisma Bennett on Jun 18, 2024
Verified
Joe promises to give his brother Bill a $30,000 new car for $50.Which of the following best describes the $50?
A) Nominal consideration
B) Past consideration
C) Adequate consideration
D) Requirements contract
Nominal Consideration
A token amount shown in a contract to indicate that a contract exists, often used to satisfy the legal requirement for a contract to be binding but not intended as a true economic value exchange.
New Car
Refers to a vehicle that has not been previously registered and comes directly from a dealership or manufacturer.
Brother
A male sibling or a man or boy in relation to other sons and daughters of his parents.
- Investigate the significance of nominal consideration in the context of contracts and how it influences the validity of agreements.
Verified Answer
JE
Janet EdwardsJun 19, 2024
Final Answer :
A
Explanation :
When agreements try to make gratuitous promises look like true bargains,they make use of nominal considerations.Courts generally refuse to enforce such agreements unless they find that the stated consideration was actually bargained for.
Learning Objectives
- Investigate the significance of nominal consideration in the context of contracts and how it influences the validity of agreements.