Consideration is the exchange of something of value between two parties in a contract. It can be money, goods, services, or a promise to do something.
Consideration is a legal concept that is used in contract law to refer to something of value that is exchanged between two parties in order to form a legally binding agreement. Consideration is an essential element of a contract and must be present for a contract to be valid. Consideration can take many forms, including money, goods, services, promises, or a forbearance of an existing legal right.
The concept of consideration is based on the idea of a “bargained-for exchange”, meaning that both parties must give something of value in order to form a contract. Consideration must be given in exchange for a promise or performance, and must be of some value to both parties. Consideration must also be “sufficient”, meaning that it must be of some value to both parties, and must be “mutual”, meaning that both parties must give something of value in exchange for the other’s promise or performance.
Consideration must also be “adequate”, meaning that it must be of some value to both parties, and must be “legal”, meaning that it must not be illegal or against public policy. Consideration must also be “real”, meaning that it must be something of value that is actually given or promised, and must be “bargained for”, meaning that both parties must have agreed to the exchange of consideration.
In addition to the elements of consideration, there are also certain defenses to consideration that can be used to invalidate a contract. These defenses include duress, fraud, mistake, and illegality. If any of these defenses are present, then the contract may be deemed invalid.
In conclusion, consideration is an essential element of a contract and must be present for a contract to be valid. Consideration must be given in exchange for a promise or performance, and must be of some value to both parties. Consideration must also be “sufficient”, “mutual”, “adequate”, “legal”, “real”, and “bargained for”. There are also certain defenses to consideration that can be used to invalidate a contract.