According to the principles of contract law, what generally happens to a contract formed without consideration?

According to the principles of contract law, what generally happens to a contract formed without consideration?

• A. It becomes enforceable with the approval of both parties
• B. It is deemed invalid by the law
• C. It can be re-negotiated if needed
• D. It remains binding until one party withdraws

Answer: (B)

A contract formed without consideration is generally deemed invalid by the law. Consideration is a fundamental principle in contract law that refers to something of value exchanged between the parties involved. It is what makes a contract binding and enforceable. Without consideration, a contract lacks the necessary element that creates an obligation. In practical terms, this means that if one party promises to provide a service or a benefit without receiving anything in return, that promise, in legal terms, may not hold up in court since the concept of consideration is essential for a valid contract. This principle reinforces the need for mutual benefit in contractual agreements, ensuring that both parties have a stake in the deal and that there is a legal incentive for both to fulfill their obligations.

A contract formed without consideration is generally deemed invalid by the law. Consideration is a fundamental principle in contract law that refers to something of value exchanged between the parties involved. It is what makes a contract binding and enforceable. Without consideration, a contract lacks the necessary element that creates an obligation.

In practical terms, this means that if one party promises to provide a service or a benefit without receiving anything in return, that promise, in legal terms, may not hold up in court since the concept of consideration is essential for a valid contract. This principle reinforces the need for mutual benefit in contractual agreements, ensuring that both parties have a stake in the deal and that there is a legal incentive for both to fulfill their obligations.