Contracts
Under Texas contract law, 'consideration' for a real estate contract means:
AThe buyer's careful review of the property
BSomething of legal value exchanged between the parties, such as money, a promise, or services✓ Correct
CThe seller's agreement to clean the property
DTREC's approval of the transaction
Explanation
Consideration is an essential element of a valid contract. In real estate, consideration is typically the purchase price paid by the buyer and the transfer of title by the seller. Both parties must provide consideration for a contract to be legally enforceable. Inadequate consideration may raise questions of contract validity.
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