(redirected from Legal consideration)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


  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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson


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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
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.
The court: "This is not a pardon, rather a decision based on specific legal considerations.
Cambridge said the journal is designed to highlight the confluence of economics, politics and legal considerations of the health policy process.
Finally, Merlo advanced several "policy and legal considerations," arguing that, under equity principles, he should be allowed to carry back his AMT capital loss to reduce his AMTI, because applying the Secs.
The journal is designed to highlight information on the confluence of economics, politcs and legal considerations in the health policy process.
They watch television, go to the movies, read the newspaper, surf the Internet, and, it is often said, "follow the election returns." In other words, they are aware of popular culture and popular views and may take those into account in their decisions, along with legal considerations and their judicial philosophy.
RIM professionals need to have a strong voice in these discussions and can bring several insights: information professionals are needed to analyze, organize, and provide access to information; the role of people is more important than the role of technology; information is a resource that needs to be managed rather than having a laissez-faire approach prevail by default; retention and disposition issues need to be addressed; and legal considerations are very important in this age of widespread litigation.
This book provides in-depth coverage of the legal considerations and issues of protecting sensitive information, human capital, and corporate assets.
Ethical and Legal Considerations in Genetic Research.
It details issues such as assistive technology funding and grant writing, legal considerations, library and computer system accessibility needs, and software and portable technology options.