Contract Basics

Question 1

What are the elements of a contract?

Answer 1

1. Offer
2. Consideration
3. Acceptance
4. Intent

Question 2

What is consideration?

Answer 2

Give up something of value in exchange for a benefit.

Question 3

What is “bargained for” consideration?

Answer 3

1. A must make promise to induce B to act.
2. B must act to induce A to fulfill promise.
3. A and B understand the price and act.

Question 4

Consideration Examples

Answer 4

Iacono (Mutual agreement to share gambling winnings)