Noun

Singular consideration

Plural considerations

consideration (plural considerations)

1. The thought process of considering, of taking everything into account.

   After much consideration, I have decided to stay.

2. Something considered as a reason or ground for a (possible) decision

   The rascal's consideration a prank at the teacher's expense would make him his mates' hero cancelled the consideration the principal's paddle will surely make him reconsider

3. The tendency to consider others.

   You showed remarkable consideration in giving up your place for your friend.

4. A payment or other recompense for something done.

   Sure I'll move my car, but only for a consideration.

5. (law) A matter of inducement for something promised; something valuable given as recompense for a promise, which causes the promise to become binding as a contract.
   • 2007, Wikipedia:Contract:

     Consideration is an intention to create legal relations.

   • 2008, A contract:

     In consideration of the perfomance of B's obligations hereunder, A hereby grants to B's personal license.

Related terms

• consider
• considerable
• considerate
• considerateness
• considered (adjective)
• inconsideration
• reconsideration

Consideration is the legal concept of value in connection with contracts. It is anything of value in the common sense, promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, or even abstinence from a future action. If either promisee already had a legal obligation to render such payment, it cannot be seen as consideration in the legal sense.

In common law consideration it is a prerequisite that both parties offer some consideration before a contract can be thought of as binding.

However, even if a court decides there is no contract, there might be a possible recovery under Quantum meruit (sometimes referred to as a Quasi-contract) or promissory estoppel.

Basic examples of consideration

If A signs a contract to buy a car from B for $5,000, A's consideration is the $5,000, and B's consideration is the car.

Additionally, if A signs a contract with B such that A will paint B's house for $500, A's consideration is the service of painting B's house, and B's consideration is $500 paid to A.

Further, if A signs a contract with B such that A will not repaint his own house in any other color than white, and B will pay A $500 per year to keep this deal up, there is also consideration. Although A did not promise to affirmatively do anything, A did promise not to do something that he was allowed to do, and A therefore did pass consideration. A's consideration to B is the forbearance in painting his own house in a color other than white, and B's consideration to A is $500 per year.

Conversely, if A signs a contract to buy a car from B for $0, B's consideration is still the car, but A is giving no consideration, and so there is no valid contract.

There are a number of common issues as to whether consideration exists in a contract.