What term describes the price demanded and received by the promisor for their promise?

The term that describes the price demanded and received by the promisor for their promise is "consideration." In the context of contract law, consideration refers to something of value that is exchanged between parties as part of an agreement. It is a fundamental element required for the formation of legally binding contracts, as it signifies that each party stands to gain something from the arrangement. Consideration can come in various forms, such as money, services, goods, or even a promise to refrain from a particular action.

Forbearance, while it involves refraining from exercising a right, is a specific kind of consideration but does not encapsulate the general concept of value exchanged in a contract. Ratification pertains to the approval of a contract or agreement and does not involve the exchange of value. Assignment refers to the transfer of rights or obligations under a contract to another party, which again, does not involve the concept of consideration directly.

Understanding consideration as the price for the promise is vital in distinguishing what makes a contract enforceable, reinforcing the principle that an agreement is not simply a matter of mutual assent but requires an exchange of value.