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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 ?
CPS was recognised for having, an enthusiastic team constantly striving to improve its considerate performance, with continual refinement of depot and site safety just part of this on-going aim.
I don't see the point in making others suffer, and hope we are considerate to our guests during the holy month.
What is the link between being a good, generous and considerate human being and a particular faith?
Anderson, a social worker, educator, and art therapist, and Davis, a secondary school, community college, and university teacher who has also taught in prisons and homeless shelters, present a framework for educators for maintaining a culturally considerate school and classrooms and respectfully interacting with students, parents, and colleagues of different cultures.
Bruce's been trying to phone Ashton to tell him to be more considerate towards ex-wife Demi, but Ashton's ignoring his calls," the Daily Star quoted a source as saying.
In his fourth book, Crafting the Considerate House, Gerstel takes the reader on his own journey to build a practical, affordable, and environmentally conscious home.
DEVELOPER Lovell has received two Considerate Constructors awards for its work on housing schemes in Liverpool.
PERCY Potts points out that the INLA have decommissioned illegal weapons followed with a sarcastic "How considerate of them".
Considerate She said: "Joanne has always been the person I go to if I have a problem and she is always there for me.
Headscratcher: You can switch the letters of considerate around to help you remember what the word means.
Some students remembered Colocho as a kind and considerate man, a sentiment that caused some to rethink their relationships with adults on campus.
Lacette is kind and considerate, while Kellie is serf-centered, greedy and jealous of her sister.