Contracts
Consideration
Definition
Consideration is a bargained-for exchange in which each party incurs a legal detriment or receives a legal benefit. It is an essential element of an enforceable contract at common law. Adequacy of consideration is generally not scrutinized by courts — a peppercorn suffices — but past consideration and pre-existing duties typically do not qualify.
Example
An uncle promises his nephew $5,000 if the nephew refrains from smoking until age 21. The nephew's forbearance constitutes valid consideration.