consideration

con·sid·er·a·tion   (kən-sĭd'ə-rā'shən)    n.   Careful thought; deliberation: We will give your proposal consideration. A result of considering; an opinion or a judgment: Is it your consideration that I should apply? A factor to be considered in forming a judgment or decision: Safety is the most important consideration in choosing a car. A treatment or account: The essay begins with a brief consideration of the history of the problem. Thoughtful concern for others; solicitude. High regard; esteem. Payment given in exchange for a service rendered; recompense: agreed to do it for a small consideration. Law Something promised, given, or done that has the effect of making an agreement a legally enforceable contract.

consideration

Something of value provided by one party to another. For example, a person might provide an idea or labor to a business in exchange for shares of ownership.

Main Entry: con·sid·er·a·tion
Function: noun
: something (as an act or forbearance or the promise thereof) done or given by one party for the act or promise of another —see also CONTRACT —compare MOTIVE
NOTE: Except in Louisiana, consideration is a necessary element to the creation of a contract. The consideration must result from bargaining by the parties, and must be the thing that induces the mutual promises.

---

ad·e·quate consideration
: a consideration that is reasonably equivalent in value to the thing for which it is given

---

fair consideration
: a consideration that is reasonable and given in good faith; specifically : something with a reasonably equivalent value that under the laws of fraudulent conveyances is given in good faith in exchange for the transfer of property

---

good consideration
1 : a consideration based on a family relationship or natural love and affection
2 : VALUABLE CONSIDERATION in this entry
NOTE: When used as defined in sense 1 good consideration is the opposite of valuable consideration. However good consideration is also sometimes used to mean valuable consideration. Good consideration of the kind denoted by sense 1 cannot create an enforceable contract.

---

new consideration
: something according to section 6-106 of the Uniform Commercial Code that becomes payable in exchange for the transfer of bulk goods

---

nominal consideration
: consideration consisting of a nominal amount

---

past consideration
: something that has already been given or some act that has already been performed that cannot therefore be induced by the other party's thing, act, or promise in exchange and is not truly a consideration

---

valuable consideration
: a consideration that confers some benefit having pecuniary value on one party to a contract or imposes a detriment having pecuniary value on the other

consideration

see in consideration of; take into account (consideration); under consideration.

consideration

in contract law, an inducement given to enter into a contract that is sufficient to render the promise enforceable in the courts. The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person. Thus, the person seeking to enforce the promise must have paid, or bound himself to pay, money, parted with goods, spent time in labour, or foregone some profit or legal right. In a contract for the sale of goods, the money paid is the consideration for the vendor, and the property sold is the consideration for the purchaser.

Learn more about consideration with a free trial on Britannica.com.