consideration meaning

 

1. ,the act of thinking about something carefully:

   

   
   After some consideration, we've decided to sell the house.

   The whole matter needs (to be given) careful consideration.

    More examples

   in a contract, something with financial value that is given in exchange for something else, for example, a bank loan that is made in exchange for the borrower's promise to repay it:

   From the wording of the agreement it was clear that the initial payment was part of the consideration.

   A lack of consideration is one reason why a promise to do something may not be recognized as legally binding by a court of law.

    

   [ C ] formal

   an amount of money as payment for a service:

   He agreed to do the job for a small consideration.

What is Consideration in Contract Law?

The special word “consideration” in contract law refers to something that has value in the eyes of the law.

Consideration:

• is an essential element to make a contract
• must be provided for a contract to be legally binding.

In contract law, it is said that "consideration must move from the promisee".

Drawing out the subtlety of this statement:

• If there is "a promisee", there must already be a promisor
• The promisor has already made a promise to the promisee, which is sufficient to form a contract (but it's not formed at this point)
• The promisee must give something back to the promisor - a promise 
• When the promisee promises to do something - gives consideration (and it doesn't have to be given to the promisor) - a legally binding contract is formed, provided the other elements have been satisfied