Which of the following statements about consideration is true?

Consideration in contract law refers to something of value that is exchanged between parties as part of an agreement. For a contract to be legally enforceable, both parties must provide consideration, which establishes that each party is making a commitment and receiving something in return. This can take various forms, not solely limited to monetary exchange.

The statement regarding the necessity for consideration to be something valuable exchanged is accurate because it captures the essence of consideration. It illustrates that consideration can be a wide range of things, including services, goods, or even a promise to do something or refrain from doing something. Hence, it does not have to take the form of cash or a physical item; it simply needs to hold value in the context of the agreement and be legally recognized as adequate.

Other options suggest limitations on what can constitute consideration, such as requiring a large sum of money or exclusive monetary value, which do not reflect the flexible nature of what consideration can be in a contractual relationship. Consideration can also be forbearance—agreeing not to pursue a right or a legal claim, which can have significant value.