Fritz offers to buy a guitar owned by Holle for twice what she paid for it. She accepts and hands the guitar to Fritz. Holle's delivery of the guitar is

Question

Quizplus · Accepted Answer

Consideration in a contract refers to something of value exchanged between the parties. Holle's delivery of the guitar in exchange for twice its purchase price constitutes consideration because it represents a mutual exchange of value: the guitar for the agreed-upon price. The fairness or adequacy of the consideration is generally not relevant as long as something of value is exchanged.

Fritz Offers to Buy a Guitar Owned by Holle for Twice