Oregon Construction Contractors (CCB) Practice Test

What does consideration in a contract refer to?

1. Deadlines provided in the contract

2. Remedies for breach of contract

3. What a party offers to do if the other party performs

4. The time given to think over an offer

The correct answer is: What a party offers to do if the other party performs

Consideration in a contract is a fundamental concept that refers specifically to what one party offers to do in exchange for the actions or promises made by another party. It represents the value that each party brings to the agreement, which can be in the form of services, money, goods, or a promise to perform a certain action. This mutual exchange is what distinguishes a legally binding contract from a mere agreement or understanding. In this context, the answer correctly identifies that consideration is the benefit offered by one party in return for something they receive from the other party. This mutual exchange is essential because, without consideration, a contract is typically not enforceable. The other options present aspects related to contracts but do not define consideration. Deadlines in the contract pertain to timing and scheduling, which are important but not relevant to the concept of consideration itself. Remedies for breach of contract refer to the consequences or solutions that arise when one party fails to fulfill their obligations, which is a separate legal matter. Lastly, the time given to think over an offer is related to the period of negotiation or decision-making but does not involve the concept of consideration in terms of contractual obligations.