d. all of the above
To create a legally binding contract, there must be a consideration that is both required and legally sufficient. A consideration is something of value that is offered in exchange for something else. There are several factors that are used to determine whether a consideration is sufficient or not.
A legally sufficient consideration must have value, be bargained for, and involve a legal benefit or detriment to both parties. However, there are circumstances where a consideration would be considered void.
Firstly, a consideration is void if it involves a pre-existing legal duty. This means that if an individual is already obligated to perform or refrain from performing a certain duty, then a promise to do so in exchange for something else is not legally binding. For example, if a construction company is already contractually obligated to complete a project, a promise of additional payment in exchange for completing the project on time is not legally enforceable.
Secondly, a consideration would be considered void if it involves a gift or donation of monetary value. This means that if a promise is made without expectation of anything in return, then it is not legally binding. For instance, if a person promises to give a charitable donation to a non-profit organization but receives no consideration in exchange, the promise is not legally binding.
Lastly, a consideration would be void if the promise is made in return for acts or events that have already taken place, which is known as past consideration. This means that if a promise is made in exchange for something that has already been done, then it is not legally binding. For example, if a company promises to pay an employee a bonus for work that was completed before the promise was made, the promise would not be legally binding.