ContractsIntermediateDelaware Exam
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 bindingCorrect
CThe deposit amount; required to secure the property
DThe attorney's review; required by Delaware closing law
Why Something of value exchanged between the parties, required to make the contract legally binding Is Correct
Answer B: Something of value exchanged between the parties, required to make the contract legally binding
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.
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Related Delaware Contracts Questions
- What is a 'simultaneous closing' (back-to-back closing) in Delaware?Contracts
- What is a 'contingent offer' and how does it affect Delaware home sellers?Contracts
- What is the 'parol evidence rule' and how does it affect Delaware real estate contracts?Contracts
- What is 'imputed knowledge' in Delaware real estate agency law?Contracts
- What is a 'home sale contingency' in a Delaware purchase contract and why do sellers sometimes reject it?Contracts
- A Delaware real estate contract that requires an illegal act is considered:Contracts
- Under Delaware contract law, what is necessary for a real estate contract to be enforceable?Contracts
- Which of the following is a required element for a valid real estate contract in Delaware?Contracts
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →