Something of value or bargained for and exchanged by the parties to a contract is called?

• A. Consideration
• B. Good Consideration
• C. Substantial Performance
• D. Restitution

Answer: (A)

Consideration is the thing of value that each party gives or promises in exchange for the other’s promise or performance. In contract law, a promise is enforceable only if something of legal value is exchanged and the exchange is bargained-for—the parties intend to trade value as the price of the promise. This value doesn’t have to be money; it can be services, goods, or forbearance. The essence is that both sides exchange something of value as part of the bargain, which distinguishes a contract from a gift. The other terms pointed to in the choices relate to different ideas—performance that meets most terms, remedies for unjust enrichment, or the notion of value that isn’t part of an actual bargain—so they don’t define the concept in question.