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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 ?
Benfield Construction has been awarded Performance Beyond Compliance status, having met and exceeded the requirements needed for the Considerate Constructors Scheme Site Code of Considerate Practice.
Iam very wary of cycling on the road, as a lot of drivers are not considerate of cyclists and, where I live, we have no cycle lanes.
He was also considerate, his mother said, recalling how as a high school senior he had organized classmates into putting on a going-away party for a longtime teacher.
How very considerate of them, although to most of us the old Mars bar was hardly cumbersome.
In a similar vein, when forwarding e-mails, be considerate enough to remove all of the previous recipients from the headers.
Country house masters were considerate husbands and fathers; children enjoyed a loving childhood; and servants had decidedly a better life, certainly, than their counterparts in the city.
For all her toughness, she was extraordinarily considerate.
Perhaps he realizes, however, that there will always be Babbitts in high places, like the late Judge George Hart, who told Kleindienst at his sentencing that his acts reflected "a heart that is too loyal and considerate of the feelings of others" and that even in the dock, he was "still.
This new advertising initiative allows us to ensure that by giving advertisers the ability to reach the Web's largest audience of qualified IT administrators in a considerate and relevant manner.
Galliford Try Construction (UK) Ltd, the contractor responsible for the demolition and new build of an Emergency Care Centre at the Queen Elizabeth Hospital, has won a Gold Award at the Considerate Constructors Scheme's 2015 National Site Awards.
The Highways Agency has been presented with a Milestone Award from the Considerate Constructors Scheme for having 1,000 sites registered a first for construction clients in the UK.
Within a matter of days Lovell saw employee Samantha Nash take home the TPAS Resident Liaison Officer of the Year Award, the company receive the RoSPA Gold Award, and no fewer than seven of its sites in the region receive Considerate Constructors Awards.