Consideration Law Contract Definition
Consideration is an English common law concept, it is the central element in the making of a contract. Without consideration, a contract cannot exist. The courts have set out several rules regarding what constitutes valid consideration. In order for something to be valid consideration, it must be:
* Sufficient – It must be of some value and inducement to the promisor
* Real – It must be capable of being enforced by law
* Possible – It must not be illegal or against public policy
* Mutuality of obligation – Both parties to the contract must be bound by the same terms
