ContractsContract_essentialsEASY
A seller agrees to sell a property for $300,000 and the buyer agrees to pay that amount. Both parties sign the agreement, but no earnest money is exchanged. Is there valid consideration?
Correct Answer
D) Yes, because the mutual promises to buy and sell constitute consideration
Mutual promises constitute valid consideration. The buyer's promise to pay and the seller's promise to convey title provide the exchange of legal value needed.
Answer Options
A
No, because earnest money is required for considerationB
Yes, but only if the contract is notarizedC
No, because only money counts as considerationD
Yes, because the mutual promises to buy and sell constitute considerationWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Contracts Question
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Background Knowledge for Contracts
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Real World Application in Contracts
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Related Topics & Key Terms
Key Terms:
contract_essentialscontractsconsiderationmutual_promises
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