consideration: contract

Consideration is the thing of value that one party promises for the their contracting party. It is a promise that has some value, ie to do something or to pay money. Consideration must move from each contracting party in order to create a legally binding contract at law in England.

See contract.

Usage: The consideration under the contract to supply goods was £10.00.

Related Words: contract; offer; acceptance; intention to create legal relations.