JD Next Practice Exam

What characterizes a gratuitous promise?

1. A promise made with clear intent to bind

2. A promise based on mutual consideration

3. A promise made without consideration

4. A promise requiring formal documentation

The correct answer is: A promise made without consideration

A gratuitous promise is characterized by being made without consideration. In legal terms, consideration refers to something of value that is exchanged between parties in a contract. For a promise to be legally binding, it typically requires consideration; that is, something must be given in return for the promise. A gratuitous promise, however, lacks this element, meaning that the promise is made voluntarily without expectation of receiving anything in return. This is why it cannot be enforced in a legal sense, as there is no reciprocal obligation. The other choices do not accurately describe a gratuitous promise. A promise made with clear intent to bind usually implies that there is a serious commitment supported by adequate consideration. A promise based on mutual consideration suggests that both parties are providing something of value to each other, which contradicts the concept of a gratuitous promise. Lastly, while some promises may require formal documentation to be enforceable, a gratuitous promise, by definition, does not necessitate such formalities because it is not intended to create a legally binding contract.