Consideration
National Real Estate Exam glossary · Contracts
Definition
Something of legal value—money, a promise, an act, or forbearance—that each party gives to support a contract. It is one of the essential elements of a valid contract; a promise unsupported by consideration is generally unenforceable.
Consideration in plain English
Consideration is the 'this-for-that' at the heart of any real deal — each side has to give up something of value for a contract to count. That something can be money, a promise, an action, or even agreeing NOT to do something you had a right to do. Here's why it matters: if a friend just says 'I'll give you my bike,' that's a gift, and the law usually won't force them to follow through; but if you promise $50 for the bike, now both sides gave something and a court will hold them to it. No consideration, no enforceable contract.
Learn these first
Practice Consideration
Related National Real Estate Exam terms
National Real Estate Exam practice questions · National Real Estate Exam flashcards · National Real Estate Exam study guide