Definition
Something of value exchanged between parties to make a contract legally binding, because courts need proof you weren't just making empty promises. The legal system's way of ensuring everyone has skin in the game.
Example Usage
The contract lacked consideration since one party promised to do something they were already legally obligated to do.
Origin
From Latin 'considerare' meaning 'to examine,' applied to contract law in English common law
Fun Fact
Consideration can be as little as one dollar, proving that contract validity isn't about the amount but the principle—tokenism with legal teeth.
Source: Contract law terminology
Related Terms
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