Question

Which of the following is a correct statement regarding a promise to refrain from doing something you are legally entitled to do?

1) A promise to not do something you are legally entitled to do is good contract consideration only if it equals in value the other party's promise.
2) A promise to not do something you are legally entitled to do is sufficient consideration for a contract.
3) A promise to not do something you are legally entitled to do is good contract consideration only if the contract involves services, not goods.
4) A promise to not do something you are legally entitled to do is good contract consideration only if the contract involves goods, not services.

Answer 1

The correct statement is that a promise to not do something you are legally entitled to do is sufficient consideration for a contract, because consideration requires an exchange of value agreed upon by the parties, and forbearance is considered valuable in this context.

Step-by-step explanation:

The correct statement regarding a promise to refrain from doing something you are legally entitled to do is that a promise to not do something you are legally entitled to do is sufficient consideration for a contract. In contract law, consideration refers to something of value that is exchanged between the parties involved in the contract. The exchange does not need to be equal in monetary value but must be something that each party agrees is sufficient to bind the contract. In the case of refraining from a legal right, it is the forbearance that constitutes the valuable consideration. This holds true regardless of whether the contract involves goods or services, as the concept of consideration is based on the agreement between the parties that the forbearance has value.