What is consideration in a contract?

• A. The contract must be for goods only
• B. A verbal promise only
• C. Exchange of something in value
• D. The service offered in the contract must be legal

Answer: (C)

Consideration is the exchange of something of value between the parties that induces them to enter into the contract. It shows there is a bargain: one side provides money, goods, a service, or a promise to do (or not do) something, and the other side provides the corresponding performance or promise. The value exchanged does not have to be equal, and it can take many forms, including a promise to refrain from an action. In dentistry-related agreements, this is why patients pay for treatment and dentists provide the promised care, or why a supplier delivers materials in exchange for payment. The idea isn’t limited to goods only, nor to verbal promises alone, and legality of the service is a separate consideration; the core point is the mutually exchanged value that constitutes the contract.