Which term refers to a promise not supported by valuable consideration and thus not binding?

• A. Valuable consideration
• B. Gratuitous promise
• C. Accord and satisfaction
• D. Exculpatory clause

Answer: (B)

A promise that isn’t backed by something of value exchanged isn’t enforceable. This kind of promise is a gratuitous promise. In contract law, consideration is what each party gives up or promises in exchange for the other's promise; without it, the promise generally won’t be binding. The other terms don’t describe this lack of consideration: valuable consideration means there is something of value exchanged and makes a promise binding; accord and satisfaction concerns settling a debt with new terms or performance; exculpatory clause deals with relieving liability, not the presence or absence of consideration.