Consideration in Contract Law

Consideration in contract law refers to something of value that is exchanged between parties entering into a contract. It can be money, services, goods, or an agreement to refrain from doing something. For a contract to be legally binding, both parties must provide consideration; this shows that each side is making a commitment. Essentially, consideration is what each party gives up or agrees to do in order to receive what the other party offers, ensuring that there is a mutual benefit in the agreement. Without consideration, a contract generally cannot be enforced.