Question

Home & Barn Construction, Inc., contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay. The elements of this, and any other, contract include:_________.
a. the parties' capability.
b. consideration.
c. necessity of purpose.
d. price.

Answer 1

Answer:

The correct answer is b. consideration.

Explanation:

Consideration in a contract details what each party's winning stance represents in a business agreement. Continuing with the example of the freelance photographer, the consideration received by the contracting entity is the finished photographs and the photographer's consideration represents the payment he received for the provision of the service. It could also indicate that the expenses may be paid by the contracting entity, such as the cost of the photographer's trips to the session site.