Okuzeka
Contract & Commercial Law vocabulary · Forming & Drafting Contracts

Consideration

Meaning in contract & commercial law, with examples

/kənˌsɪdəˈreɪʃn/nounCore term

In contract & commercial law, consideration means: Something of value that each party gives or promises in exchange for the other's promise, such as money, goods or services; common law requires it for most contracts.

In Turkish: ivaz, karşı edim, bedel

How it is used

A key idea in English and American contract law: a promise without consideration is generally not enforceable unless it is made by deed. Contracts often say 'in consideration of the payment of…' or 'for good and valuable consideration'.

Example sentences

  1. In consideration of the fee, the consultant agrees to deliver a full report.

  2. Under English law, a promise to give a gift is not binding without a deed, because there is no consideration.

Common collocations

  • in consideration of
  • good and valuable consideration
  • provide consideration
  • lack of consideration
  • contractA legally binding agreement between two or more parties in which each side promises to do, or not to do, certain things.
  • offerA clear proposal by one party to enter into a contract on specific terms, which becomes binding if the other party accepts it.
  • acceptanceClear and unconditional agreement to all the terms of an offer; once it is communicated, a contract is usually formed.
  • enforceableAble to be made effective through a court or tribunal, so that a party can be forced to comply or to pay compensation.
  • bindingHaving legal force, so that the parties must do what they have agreed and can be held responsible if they do not.

More terms: Forming & Drafting Contracts

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This page explains English vocabulary for learners. It is not legal advice.