Definition - What does Consideration mean?

Consideration forms an important part of the law of contracts. It is actually a benefit which must be agreed between the parties involved and is also one of the reasons for a party to be entering into a contract.

Justipedia explains Consideration

It is important that consideration have some value at least to the parties involved. It is exchanged in return of some service or an agreement of service. This agreement in itself is consideration. In a contract, one consideration is often given in return of another consideration. Consideration can be explained through a simple example “I will pay you $100 not to build a road next to my garage.”

Connect with us

Justipedia on Linkedin
Justipedia on Linkedin
"Justipedia" on Twitter

Sign up for Justipedia's Free Newsletter!