What Is Consideration in Business Law?


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question 1 of 3

What is a bilateral contract?

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1. When do bilateral contracts generally bind the parties?

2. What is an example of nominal consideration?

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About This Quiz & Worksheet

Several elements must be met before a contract is deemed binding. This quiz/worksheet combo will help test your understanding of the role of consideration in contract law. You'll be tested on areas that include the definition of consideration, bilateral contracts, and nominal consideration.

Quiz & Worksheet Goals

The assessments of this lesson will test you on the following aspects of business law contracts:

  • Bilateral contracts and when they are binding
  • What constitutes consideration in the formation of a contract
  • The concept of nominal consideration

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Making connections - use understanding of the concept of consideration in the formation of a contract
  • Defining key concepts - ensure that you can accurately define main phrases, such as consideration and nominal consideration
  • Distinguishing differences - compare and contrast topics from the lesson, such as bilateral contracts
  • Information recall - access the knowledge you've gained regarding the element of consideration

Additional Learning

To learn more about how the element of consideration in business contracts, review the accompanying lesson What Is Consideration in Business Law? This lesson covers the following objectives:

  • The importance of consideration in the formation of contracts
  • Types of consideration
  • The difference between unilateral and bilateral contracts