{"id":4381,"date":"2016-04-04T10:47:30","date_gmt":"2016-04-04T15:47:30","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-contracts-forms\/what-is-consideration-and-how-much-is-required.html"},"modified":"2024-06-06T01:06:38","modified_gmt":"2024-06-06T06:06:38","slug":"what-is-consideration-and-how-much-is-required","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/what-is-consideration-and-how-much-is-required.html","title":{"rendered":"What Is ‘Consideration’ and How Much Is Required?"},"content":{"rendered":"\n
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What Is 'Consideration' and How Much Is Required? <\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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Consideration is a complex yet fundamental aspect of contract law. A legally binding contract requires a valid offer<\/a>, acceptance, and consideration.<\/p>\r\n

While offer and acceptance are relatively self-explanatory, the concept of consideration might seem more elusive. Consideration means each side of a contract gives something of value. If one person gives nothing, a court won’t enforce the deal<\/a>. This principle represents the mutual assent of the parties involved in the contract.<\/p>\r\n

This article provides a general overview of contractual consideration and how much is required for a contract to be valid.<\/p>\r\n

What Is Consideration?<\/h2>\r\n

Consideration is one of the essential elements of a contract. Consideration occurs when a party to the contract changes their position. This could be promising something you are not legally required to do or promising not to <\/i>do something you are legally free to pursue.<\/p>\r\n

For instance, a company may promise to take down a website that is confusingly similar to your company’s website in exchange for you dropping your trademark infringement lawsuit against them. In this scenario, each side gains something of value — or consideration — from the agreement.<\/p>\r\n

As the preceding example illustrates, consideration doesn’t have to be money. There are several different forms of consideration. It can be anything of value, such as:<\/p>\r\n