What is consideration?
Consideration is something of value exchanged by the parties that makes a contract enforceable.
Why it matters
Without consideration, a promise is usually just a gift and not legally binding.
Common confusion
Consideration is value exchanged, not fairness — a bad deal can still have it.
Frequently Asked Questions
Is a promise to give a gift enforceable?
Usually not, because there is no consideration.
Does consideration have to be money?
No — it can be an act, a promise, or even forbearance.
What is “past consideration”?
A prior act; it is generally not valid consideration for a new promise.