The promises exchanged by the parties to a contract, either to give up something of value they have a legal right to keep, such as money or property; to do something they are not otherwise legally required to do, such as performing a service; or to refrain from an action is known as:
A) competence of parties.
B) offer and acceptance.
C) mutual agreement.
D) consideration.

Question

Quizplus · Accepted Answer

The promises exchanged by the parties in a contract are known as consideration. It is something of value that each party gives or promises to give to the other. This distinguishes a contract from a gift. The other choices are elements of a contract, but consideration is specifically related to the promises exchanged.

The Promises Exchanged by the Parties to a Contract, Either