Consideration

Brief Definition

Consideration is a fundamental concept in contract law referring to something of value that is exchanged between parties to form a binding contract.

Further Explanation

Consideration is a fundamental concept in contract law referring to something of value that is exchanged between parties to form a binding contract. It can be in the form of money, goods, services, promises, or anything else of value. For a contract to be legally enforceable, consideration must be present, meaning each party must receive something of value from the other.

Example:
A software company agrees to develop a custom application for a client in exchange for $50,000. The $50,000 is the consideration provided by the client, and the software development service is the consideration provided by the company.