In contract law, what is the term for something of value that is exchanged between parties?

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Study for the Chartered Property Casualty Underwriter 530 Exam with flashcards and multiple choice questions. Each question has hints and explanations to enhance your understanding and prepare you thoroughly.

Multiple Choice

In contract law, what is the term for something of value that is exchanged between parties?

Explanation:
Consideration is the exchange of value that makes a contract enforceable. It means each party promises or performs something in return for the other party’s promise or performance. It can be money, goods, services, or the forbearance of a legal right, and it must be bargained for. The value need not be equal, and past actions or gifts do not count as consideration.

Consideration is the exchange of value that makes a contract enforceable. It means each party promises or performs something in return for the other party’s promise or performance. It can be money, goods, services, or the forbearance of a legal right, and it must be bargained for. The value need not be equal, and past actions or gifts do not count as consideration.

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