In the legal system, the term consideration in contract law refers to something of value given to someone in exchange for goods, services or any other promise. A valid contract must include consideration for each party involved. Simply put, consideration is the main reason a party enters into a legal contract. To explore this concept, consider the following definition of consideration. Lengthy legal proceedings and writings abound on the subject of what constitutes a quid pro quo. To make it very short, there are two other important things to know. First, the consideration does not have to be money. It can be something of value, so it can be another object or service. After all, negotiated promises can include not only promises and actions, but also promises to abstain from actions and actual abstention from actions to which one is legally entitled. For example, for a contract to be enforceable, courts generally need three things: mutual consent (acceptance of the terms of the contract), a valid offer and acceptance, and consideration. As we will see later, there are five different situations in which a contract is considered a violation of the fraud law and therefore void if it is not written. These are: contracts to assume the obligation of others; contracts which cannot be performed within one year; contracts for the sale, lease or mortgage of land; contracts in exchange for marriage; and contracts for the sale of goods with a total value of $500 or more. Consideration: Something of value (either a promise, an action, or an object) that a promisor receives from a promisor in exchange for his or her promise. Ken joined LegalMatch in January 2002. Since his arrival, Ken has worked with a variety...
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