Question

Which of the following is often used by agreements that try to make gratuitous promises look like true bargains?

a. Reciprocal promises
b. Past consideration
c. Illusory promises
d. Adequate consideration

Answer 1

Adequate consideration is what agreements use to make gratuitous promises seem like true bargains, ensuring that a contract has a reciprocal exchange of value between parties, which is necessary for enforceability.

Step-by-step explanation:

The element often used by agreements that try to make gratuitous promises appear like true bargains is d. Adequate consideration. In contract law, consideration refers to something of value that is exchanged between parties and is required for a contract to be enforceable. Adequate consideration ensures that there is a reciprocal promise, where each party provides something of value, making the agreement a true bargain rather than a one-sided, gratuitous promise.

An example of adequate consideration is when one person agrees to pay money in exchange for another person's service or goods. This exchange creates a binding contract because both parties have incurred a legal detriment or given up something of value—be it money or effort. Thus, adequate consideration is key in transforming a gratuitous promise, where one party offers something for nothing in return, into a contract with mutual obligations.

Answer 2

Nominal consideration is often used to make gratuitous promises seem like true bargains, though it is not listed among the provided options. In the context of the given choices, illusory promises are the closest in practice, used to give the impression of a bargain where one may not truly exist.

Step-by-step explanation:

The element often used by agreements to make gratuitous promises appear as true bargains is nominal consideration. Nominal consideration refers to a token amount specified in a contract, often a dollar, used to fulfill the legal requirement for a contract to have consideration. However, nominal consideration is not actually one of the options provided in the question.

Among the provided options, illusory promises are sometimes used in an attempt to create the semblance of a bargain when there's actually no firm commitment. An illusory promise is a statement that appears to configure a contractual obligation but, upon closer inspection, lacks the substance and commitment required for a contract to be enforceable as it allows one party to escape performance.

An illusory promise is a promise that is unenforceable due to indefiniteness or lack of mutuality, where only one side is bound to perform.