South Carolina Business Management and Law Practice Exam 2025 – Your Comprehensive All-in-One Guide to Success!

Question: 1 / 400

In contractual language, what does 'consideration' refer to?

A written agreement

Something of value

Consideration in contractual language refers to something of value that is exchanged between parties when forming a contract. This exchange is essential because it signifies the intent of the parties to enter into a binding agreement; without consideration, a contract may not be enforceable. Consideration can take many forms, such as money, services, goods, or even a promise to do something or refrain from doing something in the future.

In a contractual context, both parties must provide consideration for the agreement to be valid and enforceable. This mutual exchange is what differentiates a contract from a mere promise or a gift, where one party gives without expecting something in return. Thus, the idea of consideration is central to the principle that agreements are formed on the basis of reciprocity and mutual benefit among the parties involved.

Get further explanation with Examzify DeepDiveBeta

A verbal commitment

A witness

Next Question

Report this question

Download South Carolina Business Management and Law Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy