Forbearance as Consideration

Forbearance as consideration refers to a situation where one party agrees to refrain from exercising a legal right, and this act of restraint serves as a form of consideration in a contract. Essentially, instead of exchanging money or goods, one party may promise to do nothing about a particular issue (like not filing a lawsuit) which can be just as valuable as making a payment. This voluntary decision to forgo a right can help solidify an agreement and provide the necessary value that supports the contract.