consideration
Definition
Consideration is the something of value that each party gives to the other to make a contract legally binding. It can be money, a promise to do something, or even a promise not to do something you legally have the right to do. Without consideration on both sides, a contract is generally not enforceable in court.
Example
When you hire a web designer, your consideration is the payment you agree to make, and their consideration is the promise to build your website.
Watch Out
A gift or one-sided promise with nothing given in return is not consideration, which means it cannot form the basis of an enforceable contract.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.