Which of the following is true regarding consideration in contracts?

Consideration is a fundamental element in the formation of contracts, and its role is to ensure that something of value is exchanged between parties. This can indeed consist of either a promise or actual performance. The essence of consideration is that each party must provide something that has value, which is why the inclusion of a promise or an act as valid consideration is critical.

In contract law, the notion that consideration can be a promise means that one party agrees to do something or refrain from doing something in exchange for the other party's promise or performance. This flexibility allows for various forms of agreements, whether they involve tangible actions or intangible commitments.

This principle underscores the necessity for both parties to contribute in a way that creates a mutual benefit, further enhancing the binding nature of the contract. Overall, understanding consideration as a combination of promises and performance is vital, as it lays the foundation for valid contracts and the obligations they impose on the parties involved.