Introductory Business Law CLEP Prep Practice Exam 2025 - Free Practice Questions and Study Guide

Question: 1 / 400

What is the consideration element of a contract?

That both parties have given something of value

The consideration element of a contract refers to something of value that is promised by each party involved in the contract. Option B is incorrect because while all parties must be in agreement, this alone does not constitute consideration. Option C is incorrect because reading the contract is not considered a form of consideration. Option D is incorrect because while a signed contract is important for enforceability, it does not necessarily indicate the existence of consideration. Only option A accurately describes the consideration element of a contract.

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That all parties involved are in agreement

That all parties involved have read the contract

That the contract has been signed by all parties

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