FAQ: I hear “consideration” talked about in the context of contracts -- what is it?
Put simply, “consideration” in a contract is something of value that is bargained for and received by one party to a contract from another party to the contract. Consideration is a requirement of any contract; a contract that lacks consideration is considered void and of no effect. Consideration is often money, but does not have to be money. Consideration can be a piece of real or personal property, or a promise to do something or to not do something. An attorney can review your contract to make sure it is bound by valid consideration; if it isn’t, you may find yourself agreeing to a contract that you believed protected you but in fact has no legal effect whatsoever.