What is the concept of consideration in contract law?

Consideration in contract law is a legal concept that requires something of value to be given by each party in a contract to make the agreement binding. Consideration is a basic requirement for forming a contract in North Carolina. Essentially, consideration is the bargain that each party makes for entering into the agreement. According to the law, a contract cannot become binding and enforceable unless both parties receive something of value in exchange. In a contract, the consideration can be a certain amount of money, a physical object, a promise to do something, or a valuable right. The consideration does not have to be equal for each party, but each party must gain something from the agreement. To determine the validity of a contract, North Carolina courts may examine the consideration given by each party. Consideration is a material element of a contract and must clearly show that something of value is received in exchange for the other. For a contract to be enforced, the consideration must have some legal value and be bargained for in exchange for the other party’s performance. When consideration is lacking, the agreement may be deemed void and unenforceable.

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What is the concept of consideration in contract law?

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