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CA Foundation Consideration — practice questions — page 2

Explore 47 free Consideration questions in CA Foundation Businesslaw. Open each question or exercise to read its content, reference answers and available explanation.

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Consideration questions and exercises with answers

Showing questions 31–47 of 47.

If no element of consideration is found in a common law system, what follows?Read the answer and worked solution →Where no contract exists for want of consideration, recovery may still be possible throughRead the answer and worked solution →Under English law, consideration must be sufficient but need not beRead the answer and worked solution →What mainly separates Indian from English law on consideration?Read the answer and worked solution →Courts generally ask whether consideration exists, not whether it isRead the answer and worked solution →In English common law, a peppercorn given by one party is treated asRead the answer and worked solution →A agrees to paint B's house for $500, then demands $750 midway, and B agrees. B must pay A onlyRead the answer and worked solution →Past consideration generally has what legal value under the traditional common law rule?Read the answer and worked solution →Which is NOT a condition for past consideration to count under Pao On v Lau Yiu Long?Read the answer and worked solution →B pays A $5,000 to hold a script exclusively for a year, with $50,000 more if B produces it. This isRead the answer and worked solution →A bonus clause in a contract rewards the contractor forRead the answer and worked solution →Which international instrument expressly rejects the doctrine of consideration?Read the answer and worked solution →Which doctrine states a contract cannot confer rights or obligations on a non-party?Read the answer and worked solution →Mrs Donoghue could not sue under the contract for a bottle with a snail, so she sued the maker inRead the answer and worked solution →Which is a recognised common law exception to the privity rule?Read the answer and worked solution →In which case did Cardozo hold that no privity is needed for a dangerous defective product claim?Read the answer and worked solution →In Beswick v Beswick, what remedy was granted for a term benefiting a non-party?Read the answer and worked solution →

Worked practice questions

If no element of consideration is found in a common law system, what follows?

  1. A voidable contract
  2. An estoppel contract
  3. A valid written deed
  4. No contract is formed
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Correct answer: D. No contract is formed

Consideration is a prerequisite, and without it the agreement never becomes a binding contract.

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Where no contract exists for want of consideration, recovery may still be possible through

  1. Quantum meruit claim
  2. Specific performance
  3. Liquidated damages
  4. Rescission of deed
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Correct answer: A. Quantum meruit claim

Quasi-contract (quantum meruit) and promissory estoppel can give relief even without a contract.

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Under English law, consideration must be sufficient but need not be

  1. Present
  2. Adequate
  3. Real
  4. Lawful
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Correct answer: B. Adequate

English courts look for something of value but do not weigh whether it matches the promise.

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How to practise

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More Businesslaw topics

Negotiable Instruments Act 1881Nature of ContractsAgencyThe Limited Liability Partnership Act 2008PartnershipContract of Indemnity and GuaranteeBreach of Contract and its RemediesPerformance of Contract