Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What element of a contract refers to the exchange of benefits?

Legal purpose
Mutual agreement
Consideration
Written agreement

The correct answer is: Consideration

Consideration refers to the exchange of benefits as it is an essential element of a contract that ensures both parties receive something of value in return for their obligations. Option A, legal purpose, refers to the requirement that contracts must be for a lawful purpose. Option B, mutual agreement, refers to the element of a contract where both parties must have a meeting of the minds and agree to the terms. Option D, written agreement, refers to the form in which a contract must be recorded in certain cases, but it is not necessarily required for a valid contract. Therefore, options A, B, and D are incorrect as they do not directly address the concept of exchange of benefits.