What is considered 'consideration' in a contract?

In the context of contracts, 'consideration' refers to the exchange of something of value between the parties involved. This is a fundamental principle in contract law, as it is what differentiates a legal contract from a mere promise. Consideration can take various forms, including money, services, goods, or any other item that holds value. For a contract to be enforceable, there must be a clear indication that both parties have agreed to exchange something of value, making this exchange the cornerstone of mutual agreement.

The legal advice received by one party, the market value of a property, and the final signatures of all parties do not constitute consideration in this legal sense. While legal advice may inform a party's decision-making, it is not itself an exchange of value. Similarly, the market value of the property is a measure of worth but does not involve a reciprocal exchange. Final signatures represent acceptance of the contract terms but do not inherently provide value in the context of consideration.