JD Next Practice Exam

Question: 1 / 400

What is the legal standing of the agreement if a person is informed they can purchase an item on credit but no consideration is provided?

The court will enforce the agreement

The agreement will not be enforced

When an agreement involves the sale of an item on credit, consideration, which refers to something of value exchanged between the parties, is essential for the agreement to be legally binding. In this scenario, if a person is informed they can purchase an item on credit but no consideration is provided, it indicates that there is no exchange of value to support the agreement.

In legal terms, consideration is a fundamental component of any enforceable contract. Without it, the court typically will not recognize the agreement as valid. Since no consideration was provided, the agreement lacks the necessary legal requirements to be enforceable. Thus, the appropriate legal standing would be that the agreement will not be enforced. This reflects the principle that a contract must have mutual obligations and benefits to be recognized by law.

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The agreement is voidable by either party

The agreement has binding terms

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