Consideration in contract law refers to something of value that is exchanged between two parties to create a legally binding agreement. Consideration can take many forms, but it is usually a promise to do something or to refrain from doing something. This promise must be made by both parties and must be supported by legal consideration.
Legal consideration can be any benefit or detriment to either party that is recognized by law. This includes money, goods, services, or promises of future performance. For example, if you agree to pay someone $100 to mow your lawn, the $100 is the legal consideration that supports the agreement.
Consideration must be given by both parties for a contract to be enforceable. This means that both parties must receive some sort of benefit or incur some sort of detriment as a result of the agreement. For example, if you promise to mow your neighbor`s lawn in exchange for him promising to wash your car, both parties have given consideration, and the contract is enforceable.
Consideration also plays an important role in contract modification. If both parties agree to modify an existing contract, the modification must be supported by new consideration. This means that both parties must receive some new benefit or incur some new detriment as a result of the modification.
To summarize, consideration is an essential element of contract law. It refers to something of value that is exchanged between two parties to create a legally binding agreement. Without consideration, a contract is not enforceable. Legal consideration can take many forms, including money, goods, services, or promises of future performance. And in the case of contract modification, new consideration must be given to support the modification.