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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 ?
Appoint national manpower in place of expatriate workers at any other contracts won by the company while taking into consideration the matching of experiences and efficiencies in the replacement program.
ISLAMABAD -- Prime Minister Nawaz Sharif vowing that all terrorist dens in North Waziristan would be destroyed said that the NWA offensive was launch after long thought and taking into consideration all its implications.
The defense had raised doubts over the testimonies of the witnesses taking into consideration the haphazard manner in which the details of Qasab were filled by jail authorities.
This is not a fair comparison." She said, "Why?" I said, "Because you're comparing our scale to your scale without really taking into consideration if we have our own scale." I think that this is something that maybe Aswat is starting to do by creating our own language.
"The draft deconstruction specifications set forth "site-specific" protocols by LMDC's contractor for the removal of 'contaminated dust, debris and materials.' In EPA's judgment, the December 10, 2004 specifications or 'protocols' for the work, while adequate in some areas, need to be materially strengthened in several principal respects, as set forth in the enclosed comments." LMDC officials say they won't move forward without a plan taking into consideration all comments from governmental regulatory agencies and the public.
At trial, the Service switched gears aim claimed that the allowable medical deduction had to be based on actuarial calculations, taking into consideration healthcare utilization and longevity.
Because of inaccuracies in the Julian calendar established by Julius Caesar in 46 B.C., Pope Gregory XIII (1582) had the calendar reformed, taking into consideration new criteria for calculating the day of Easter.
Taking into consideration the simulation results, the spokes of the wheel were reinforced in their cross section, and the base of the wheel was thickened continually toward the spokes.
Under HLBV, an investor determines its share of the investee's earnings or losses for a period by answering this question: How much better (or worse) off is the investor at the end of the period than it was at the beginning, taking into consideration only those transactions and other events the investee recognizes under GAAP?
Returning to your pre-pregnancy exercise level needs to be gradual, taking into consideration de-conditioning more than your hormonal status at this point.
Asset allocation models should be compiled taking into consideration this factor, as well as current market, economic and political conditions.
However, we believe that a fresh reflection should now take place, taking into consideration all aspects of a more balanced and integrated growth of the Asian, African and Latin American economies to foster new opportunities for a future sustainable, re-deployed and revitalized natural rubber production industry.