CIMA BA4 · Chapter 10 · Question 5 of 10
Under English law, which statement about consideration is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Consideration must be sufficient but need not be adequate
Explanation
The courts will not assess whether a bargain is a good one; consideration need only have some value in the eyes of the law (Chappell v Nestle, where chocolate wrappers were sufficient). Past consideration is generally not good consideration (Re McArdle), and consideration must move from the promisee.
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