Question

Which situation would be considered sufficient consideration for a contract to exist?

A) Promising to do something without expecting anything in return
B) Giving a gift without any reciprocal agreement
C) An exchange of value between parties
D) Making a verbal agreement without witnesses

Answer 1

The situation that would be considered sufficient consideration for a contract to exist is an exchange of value between parties.

Step-by-step explanation:

Out of the options provided, the situation that would be considered sufficient consideration for a contract to exist is An exchange of value between parties (Option C).

Sufficient consideration refers to something of value given by one party to another as a part of a contract. In a contract, both parties must provide something of value in order for it to be enforceable.

For example, if Party A promises to deliver goods or services and Party B promises to pay for them, there is an exchange of value happening, which would satisfy the requirement of sufficient consideration for a contract to exist.