Contracts
In Colorado, what is the legal consequence of a contract 'lacking consideration'?
AA. The contract is voidable by either party
BB. The contract is void and unenforceable, as consideration (exchange of something of value) is required for a valid contract✓ Correct
CC. The contract is valid if signed by both parties
DD. Only the party lacking consideration cannot enforce it
Explanation
Consideration (something of value given by each party) is one of the essential elements of a valid contract. If a contract lacks consideration (e.g., a promise to give a gift), it is void and unenforceable. In real estate purchase contracts, consideration typically includes the buyer's promise to pay and the seller's promise to convey.
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