The contractual requirement of consideration provides that
A)the contract must be given careful consideration before it is entered into.
B)the offeror must pay cash for the offeree's promise to perform an act.
C)an offeree must pay cash for the offeror's promise to perform an act.
D)each party must give something of value in exchange.
E)what is exchanged by the parties must be of equal value.

Question

Quizplus · Accepted Answer

Consideration requires each party to give something of value in exchange for the promise made by the other party. This can be in the form of money, goods, services, or a promise to perform an action. However, it does not require that the value of what is exchanged by the parties be equal, only that there is some exchange of value. Choice A and B are not relevant to the contractual requirement of consideration, and choice C is incorrect as it is the offeror who makes the offer, not the offeree.

The Contractual Requirement of Consideration Provides That