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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.
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 ?
The researchers found that 4.2 percent of the admissions had at least one note reflecting financial considerations during the ICU stay.
At the state level, the level of change in annuity consideration payments ranged from a decrease of 29%, in Nevada, to an increase of 14%, in New Hampshire.
We have worked closely with the Combined Arms Doctrine Directorate (CADD) at Fort Leavenworth and other proponents to better describe and provide TTP on civil considerations. The fundamentals of civil considerations rest in discussions of the nature of the OE, counterinsurgency (COIN) operations, and intelligence analysis across a body of combined arms and intelligence doctrine.
Sex in the Bible is a refreshingly contemporary consideration of a cluster of themes that are usually treated quite separately.
Alan Montgomery addresses all of this variety in his book, Opera Coaching: Professional Techniques and Considerations, and he does it in an informal, easy-to-read style.
* Unique Considerations for State Individual Tax Returns.
Most important, the systems engineering plan and the systems engineering trade-off studies and decision matrices could include MCTR and MCTO considerations. MCTR and MCTO considerations could be added as factors for award fee incentives.
Even so, it may be the case in Britain that long-period course units dealing with world history still incorporate social history in a limited way, missing opportunity for students to grapple with such matters as social causation of events and the influence of social considerations in determining historical periodisation.
Another approach, deontology, takes into consideration universal and generalized moral principles, independent of the consequences of possible actions.
However, we argue that making sampling and sample size considerations is central to qualitative research.
Accordingly, based on all the facts of record, the Board has determined that competitive considerations are consistent with approval.
Considerations? Hard turning can work as an alternative to grinding.