Contracts
In an Illinois real estate transaction, what is 'consideration' and why is it required?
AThe buyer's credit score used to qualify for a mortgage
BSomething of value exchanged between parties that makes a contract legally binding✓ Correct
CThe seller's obligation to disclose material defects
DThe real estate commission paid to the broker
Explanation
Consideration is something of value (money, property, services, or a promise to act or refrain from acting) exchanged between contracting parties. Without valid consideration on both sides, a contract is generally not enforceable. In a real estate purchase contract, the buyer's consideration is typically the purchase price, and the seller's consideration is the promise to convey title.
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