What is the concept of consideration in contract law?

In contract law, consideration is the concept of something of value given in exchange for something else. In Washington, consideration is the basis of any legally binding agreement between two parties. Consideration occurs when each party to a contract agrees to give something of value to the other party in exchange for something else. For example, if Party A agrees to buy Party B’s car for $5,000, then Party B agrees to sell the car to Party A, then both parties are exchanging an enforceable contract. This is because each party is offering something of value as consideration for entering into the agreement--in this case, money for a car. Consideration can take many forms, including money, a promise to perform specific duties, or a commitment to not perform certain activities. In Washington, consideration can also be something of nominal value if the parties agree the item is of value in the contract. In a contract dispute, consideration determines the validity of the agreement and can be used to prove whether a contract existed. If the parties do not agree on consideration, or if one party did not give consideration, then the contract can be deemed unenforceable and invalid.

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What is the concept of consideration in contract law?

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