1) payment or money. 2) a vital element in the law of contracts, consideration is
a benefit which must be bargained for between the parties, and is the essential
reason for a party entering into a contract. Consideration must be of value (at
least to the parties), and is exchanged for the performance or promise of performance
by the other party (such performance itself is consideration). In a contract, one
consideration (thing given) is exchanged for another consideration. Not doing an
act (forbearance) can be consideration, such as "I will pay you $1,000 not to build
a road next to my fence. " Sometimes consideration is "nominal," meaning it is stated
for form only, such as "$10 as consideration for conveyance of title," which is
used to hide the true amount being paid. Contracts may become unenforceable or rescindable
(undone by rescission) for "failure of consideration" when the intended consideration
is found to be worth less than expected, is damaged or destroyed, or performance
is not made properly (as when the mechanic does not make the car run properly).
Acts which are illegal or so immoral that they are against established public policy
cannot serve as consideration for enforceable contracts. Examples prostitution,
gambling where outlawed, hiring someone to break a skater's knee or inducing someone
to breach an agreement (talk someone into backing out of a promise).
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