Oregon Construction Contractors (CCB) Practice Test

Which of the following would be an example of “consideration” in a contract?

1. A promise to pay

2. Signing the contract

3. The date of the agreement

4. The parties involved

The correct answer is: A promise to pay

In the context of contract law, “consideration” refers to something of value that is exchanged between parties involved in an agreement. It is a fundamental component that makes a contract binding and enforceable. In this case, a promise to pay is a clear and tangible example of consideration because it involves a commitment to provide something of value (money) in exchange for the services or goods rendered by the other party. This is essential because a contract without consideration may be viewed as a mere promise or gift and will typically not hold up legally. It establishes the mutual obligations and helps to ensure that both parties have a stake in the agreement. The other choices—signing the contract, the date of the agreement, and the parties involved—do not represent consideration. Signing the contract is an action that signifies agreement, but it does not involve an exchange of value. The date of the agreement is merely a point of reference and does not have any value exchange. Similarly, identifying the parties involved is just a matter of contract structure and does not pertain to the exchange of value. Overall, the promise to pay embodies the essential criteria for consideration in a contract.