Question

Mr. Blue gave Mr. Green $1000 to help his family out. Later Mr. Blue entered into a sales

contract with Mr. Green and wanted the consideration to be in part the $1000. What is the
term for the $1000?

Answer 1

The term for the $1000 is consideration. Consideration refers to something of value given in exchange for a promise or an act in contract law.

Step-by-step explanation:

The term for the $1000 that Mr. Blue gave to Mr. Green is consideration.

Consideration is a legal term in contract law that refers to something of value given in exchange for a promise or an act. It can take the form of money, services, goods, or even a promise to do or not do something. In this case, the $1000 given by Mr. Blue to Mr. Green is being offered as one part of the consideration in their sales contract.

For example, let's consider two other scenarios:

1. Freda bought a house for $150,000 in cash. If she were to sell it now for $250,000, the additional $100,000 would be considered the consideration in the sale.
2. Ben bought a house for $100,000. He put 20% down and borrowed the rest from the bank. The value of the house has now increased to $160,000, and he has paid off $20,000 of the bank loan. In this case, the increased value of the house and the amount paid off the loan can be considered as the consideration in the transaction.