Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 48

Which of the following contract concepts is typically given in exchange for the execution of a promise?

Answer options

• A. Lawfulness.
• B. Consideration
• C. Agreement
• D. Discharge.

Correct answer: B

Explanation

The correct answer is B, Consideration, as it refers to something of value exchanged between parties in a contract. Lawfulness pertains to the legality of the contract, Agreement focuses on the mutual understanding between parties, and Discharge relates to the termination of contractual obligations, none of which directly address the concept of exchange for a promise.