NFPA Paralegal Core Competency Exam (PCCE)Substantive LawMedium
A paralegal is assisting an attorney with a case involving a small business that failed to deliver goods as promised under a written agreement. The business argues that the contract is invalid because there was no specific price stated in the agreement, only a clause stating 'market price at time of delivery.' What legal principle is MOST relevant to determining the validity of this contract?
- AStatute of Frauds
- BConsideration
- COffer and Acceptance
- DPromissory Estoppel
Show answer & explanationAnswer & explanation
Correct answer: B. Consideration
Consideration is a fundamental element of a valid contract, requiring a bargained-for exchange of something of legal value. While a precise price is ideal, 'market price' can be sufficient consideration if it provides a means to determine the value.
Why the other options are wrong
- A. The Statute of Frauds requires certain contracts to be in writing, but doesn't address the content of the price term itself.
- C. Offer and acceptance are about the formation of the agreement, but the question specifically concerns the 'price' term's impact on validity.
- D. Promissory estoppel is a doctrine used to enforce promises even without a formal contract, but it's not about contract validity itself.
Contract Consideration
Something of legal value (a promise, an act, or a forbearance) bargained for and given in exchange for a promise, forming the basis of a contract.
- Must be a 'bargained-for exchange'.
- Need not be monetary; can be a promise to do or not do something.
- Courts generally don't inquire into adequacy, only sufficiency.
Memory trick: Offer, Acceptance, Consideration, and Legality are the A, B, C, D of contracts.