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SESK: Stuff Everyone Should Know · sesk.info/biz-contract-consideration

In most states, what does consideration mean in contract law?

Something of value exchanged between the parties.

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  1. Something of value exchanged by both sides ✔
  2. Being polite during negotiations
  3. Time to think before signing

Why: In most states, consideration is the exchange of promises or obligations, like money for a service. A promise of a gift with nothing in return usually is not an enforceable contract.

Huh, didn't know that: Paying extra for work someone was already obligated to do usually is not new consideration.

The dad joke
I gave my friend a dollar for his joke. Now that's consideration.
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References

Answer: Something of value exchanged by both sides. In most states, consideration is the exchange of promises or obligations, like money for a service. A promise of a gift with nothing in return usually is not an enforceable contract.

  1. Cornell LII Wex: Consideration www.law.cornell.edu/wex/consideration
    Consideration means the mutual exchange of promises or obligations between the parties to a contract.
    Checked 2026-10-11.

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