Glossary · Contracts
Consideration
consideration-218ee132ced33f09-2026-07-28
- Type
- Glossary
- Jurisdiction
- National
- Date
- 2026-07-28
- Topic
- Contracts
The bargained-for exchange of value that makes a promise legally enforceable as a contract. Each side must give or promise something, whether money, goods, services, or giving up a legal right; a gratuitous promise generally is not a contract. Courts rarely question whether the exchange was a good deal, only whether a real exchange occurred.
Definition
The bargained-for exchange of value that makes a promise legally enforceable as a contract. Each side must give or promise something, whether money, goods, services, or giving up a legal right; a gratuitous promise generally is not a contract. Courts rarely question whether the exchange was a good deal, only whether a real exchange occurred.
Consideration. The bargained-for exchange of value that makes a promise legally enforceable as a contract. Each side must give or promise something, whether money, goods, services, or giving up a legal right; a gratuitous promise generally is not a contract. Courts rarely question whether the exchange was a good deal, only whether a real exchange occurred. Example: The release was enforceable because the employer paid two weeks of severance as consideration.