Consideration in Contract Law Explained

A core requirement for the formation of a contract in the US, UK, and other common law jurisdictions is the concept of ‘consideration’. Consideration is provided if something of legal value is bargained for and exchanged between the parties. That is, each side to a contract needs to provide consideration.

Consideration is one of the key concepts of contract law. It is an essential element needed to make a contract legally binding. It is also unique in that it doesn’t exist in this form in civil law jurisdictions.