What is consideration in a contract?

In a contract, consideration is the exchange of goods, services, or money between two or more parties. It is the thing of value that is given in exchange for a promise. Consideration is an essential element of contract law in North Carolina. Without it, a contract cannot be enforceable in court. In North Carolina, consideration must have legal value, which means it must have some monetary or physical value. The consideration must also be something that both parties agree to exchange—both parties must give something in return for the benefit of the other. For instance, in a business transaction, one party might give money or goods to the other, and in return, the other party agrees to provide them with a service. Additionally, consideration must be of equal value. This means that if one party is receiving more value than the other, it is not a true exchange of consideration. The parties must both be getting something of equal value for the contract to be enforceable. Finally, consideration must be bargained for. This means that both parties must negotiate or agree to the exchange of consideration in order for the contract to be enforceable. Without a negotiated agreement of consideration, the contract is not valid.

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