Contracts
What is 'consideration' in a Delaware real estate contract?
AThe careful thought given by both parties before signing the contract
BSomething of value given by each party to the other — in a purchase contract, the buyer's promise to pay and the seller's promise to convey title✓ Correct
CThe property's fair market value at the time of the contract
DThe real estate agent's commission paid at closing
Explanation
Consideration is something of value exchanged between contracting parties that makes the contract legally binding. In a real estate purchase contract, the buyer's consideration is the purchase price (or promise to pay), and the seller's consideration is the promise to convey clear title to the property.
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