What can be consideration?

• A. A A promise
• B. B A performance
• C. C A forbearance
• D. D A promise, performance, or forbearance

Answer: (D)

Consideration is something of value exchanged between the parties to support a contract. It can take the form of a promise to do something in the future, the actual performance of that promise, or forbearance—refraining from exercising a legal right—in exchange for the other party’s promise or performance. The key requirement is a bargained-for exchange: the promise or act is sought in return for the other side’s promise, not something given after the fact or already required by law. Forbearance to sue on a disputed claim, performed in good faith, counts as valid consideration, as does a promise to perform or the actual performance itself. A promise to do something you’re already obligated to do doesn’t count as new consideration, and past actions aren’t consideration. So, all three forms—promise, performance, or forbearance—can serve as valid consideration.