Which of the following best describes consideration in a legal contract?

Consideration in a legal contract refers to the value that is exchanged between parties involved in the agreement. It is an essential element of a valid contract, as it demonstrates that both sides are contributing something of value, which can be money, services, goods, or a promise to do or not do something. This exchange solidifies the commitment between the parties and ensures that the contract is binding.

In legal terms, without consideration, a contract cannot be enforceable because there is no incentive for either party to fulfill their obligations. Therefore, the presence of consideration is critical for determining the legitimacy of a contract. This is why identifying that consideration is the mutual value exchanged between the parties directly addresses the principle behind contractual obligations and the necessity of each party's contribution.