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Money or other payment provided in exchange for an act or service that helps a business. Consideration may be cash in which case, it is more like a sale or payment-in-kind. For example, a person may receive a certain amount of equity in a business in exchange for giving or allowing the business to use the person's intellectual property.


Something of value provided by one party to another. For example, a person might provide an idea or labor to a business in exchange for shares of ownership.


  1. something of value which is offered by a party to a CONTRACT in exchange for something of value received. Consideration usually takes the form of a monetary payment in exchange for GOODS or SERVICES received, but could involve, for example, the direct exchange of one product for another (as in BARTER).
  2. the sum of money paid by an investor to purchase SHARES, STOCKS, etc., or the proceeds from selling such securities before allowing for stockbroker's commission and other transfer expenses.


An act or a promise given by one person in exchange for an act or a promise from the other.The values do not have to be equal, and it has been said that one may promise to give a barleycorn in exchange for the promise to deed a castle,and it will be sufficient.It is a common misperception that earnest money is the component that makes a real estate contract enforceable. In reality, the promise to buy, and the promise to sell, is sufficient consideration. Consideration is an essential element for contract enforcement.

Consideration substitutes. Sometimes the law will permit enforcement of a contract even though one side or the other did not give consideration, if there was an allowed consideration substitute. The most common one is detrimental reliance, in which one person promises to do a thing gratuitously and another worsens his or her position in reliance on that promise. Under ordinary circumstances this would be a mere promise to make a gift, and unenforceable. Because of the detrimental reliance, however, it may become an enforceable contract.

Adequate consideration. If this is required by law, the consideration must be reasonably close to the value of the thing promised or exchanged.

Good consideration. The consideration is based on natural duty and affection or a moral obligation, such as property sold for “love and affection.”

Consideration of support. It is not uncommon for elderly parents to transfer property to their children “in consideration of care and support.” In most states, such transfers are voidable if the care and support are not forthcoming.

References in periodicals archive ?
In addition to legal considerations, businesses must decide on their marketing plan in order to gain more customers.
The legal considerations of starting and growing a business are complicated, and expert legal advice is often outside of a start-up company's budget," said Michael A.
There may be special requirement to consider depending on your business and there are also many legal considerations to take into account.
We must not allow the decision to prosecute rely on a basis of black and white legal considerations, in spite of the DPP denial it will be not be down to tick-box clarification there is no other way to consider dispassionately any action or decision by an individual.
The legal considerations for the over-50s can be complex and our aim was to update our guests so they are completely up to speed.
Potential topics include the stimulus bill (American Recovery and Reinvestment Act) and accountability measures, legal issues in human service initiatives of the new administration and new Congress, and legal considerations in providing client-centered human services.
These legal considerations address the gap between customary and statutory law in Namibia, recent relevant developments in the process of law reform, and judicial reflections on women and custom in Namibia.
The boot camp covered a wide variety of topics including business plans, legal considerations, marketing research, pricing models, bookkeeping and accounting, cash flow management, promotion, branding, personnel training, customer service and e-commerce.
The book also addresses student Internet safety, copyright and other legal considerations, and illustrates the use of various Web tools that offer educators unique teaching opportunities.
Human resources is a key part of any company and this will allow us to highlight good practices along with discussing the legal considerations important to businesses," he said.
While the cd-rom makes it easy to just fill in the blanks with company-specific information and policies, the book does a fine job of considering the ramifications of an employee handbook, from legal considerations to difficult subjects such as safety and harassment, drug testing, reduction in wages, and more.
It will focus on engineering and legal considerations related to the assessments of buildings.