Consideration is whatever is given in exchange for something else. People often think of consideration as the money exchanged by the parties. Legally, consideration is the obligation that each party makes to the other to make the contract enforceable. Each party to the contract must obligate himself or herself by placing consideration in the agreement.
A common misconception is that the good-faith deposit in a real estate sale contract is the consideration. The good faith deposit is made by a buyer to assure the seller that the buyer is serious about the transaction and the buyer intends to purchase the property.
This information is courtesy of Captain Wayne Rowlett and Rowlett Real Estate School www.rowlettrealestateschool.com
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