Contracts
Under Minnesota contract law, 'consideration' in a real estate purchase agreement is provided by:
AOnly the earnest money deposit
BThe buyer's promise to pay (purchase price) and the seller's promise to sell and convey title✓ Correct
CThe real estate commission paid to the agents
DThe mortgage loan commitment provided by the lender
Explanation
Consideration is what each party gives in exchange—it is the mutual promises that make a contract binding. In a Minnesota purchase agreement, the buyer's consideration is the promise to pay the purchase price (and earnest money), and the seller's consideration is the promise to sell and convey marketable title. Both promises are needed for a valid contract.
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