What describes a legally enforceable agreement where a promise is exchanged for consideration?

A legally enforceable agreement where a promise is exchanged for consideration is best described as a contract. In legal terms, a contract is defined as an agreement between two or more parties that creates mutual obligations enforceable by law.

The critical components of a contract include an offer, acceptance, and consideration, which refers to something of value that is exchanged between the parties. This exchange is what gives the agreement legal significance and enforces the promises made by each party.

While an agreement may refer to a mutual understanding between parties, it does not necessarily have the legal enforceability or the requisite elements needed for it to be considered a contract. Commitment and understanding are broader terms and lack the specific legal framework that denotes an enforceable obligation. Therefore, the term "contract" precisely captures the essence of a legally binding agreement where promises are made in return for consideration.