Simple definition
Something of value exchanged to support a contract or promise.
Formation
What Does Consideration Mean?
Something of value exchanged to support a contract or promise.
Example in a contract
The parties acknowledge sufficient consideration.
What consideration means in a contract
This concept concerns how an agreement is created, signed, authorized, accepted, or supported by consideration.
Why it may matter
It can affect whether the document accurately records who is agreeing, in what capacity, and on what basis. Review the exact language rather than relying on the label alone.
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FAQ
Questions about consideration.
What does consideration mean in plain English?+
Something of value exchanged to support a contract or promise.
Where might consideration appear in a contract?+
This concept concerns how an agreement is created, signed, authorized, accepted, or supported by consideration.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.