Contract Consideration
/ˈkɒntrækt kənˌsɪdəˈreɪʃən/
Definitions
- (n.) Something of value exchanged between parties to form a binding contract.
The promise of payment served as valid contract consideration.
- (n.) An essential element in contract law that distinguishes enforceable agreements from gratuitous promises.
Without contract consideration, a contract generally lacks legal enforceability.
Related terms
See also
Commentary
Contract consideration must involve a bargained-for exchange; a mere gift or gratuitous promise usually does not constitute valid consideration.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.