Contracts
What is 'consideration' in a real estate contract, and why is it required?
AThe commission paid to the broker; required by state law
BSomething of value exchanged between the parties, required to make the contract legally binding✓ Correct
CThe deposit amount; required to secure the property
DThe attorney's review; required by Delaware closing law
Explanation
Consideration is anything of legal value (money, a promise, services) exchanged between the contracting parties. It is required to make a contract legally enforceable — without consideration, an agreement is merely a gift promise.
Related Delaware Contracts Questions
- An option contract requires the optionor (seller) to:
- What is an 'option contract' in Delaware real estate?
- What is 'assignment' of a real estate contract in Delaware?
- What is the legal effect of a contingency in a Delaware real estate purchase agreement?
- Under Delaware law, what is a 'void' contract?
- What is the 'anti-discrimination clause' in a Delaware purchase agreement?
- What is 'mutual assent' (meeting of the minds) in a Delaware real estate contract?
- What is a 'counter-offer' in Delaware real estate negotiations?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →