Consideration is the value each side gives — money, goods, services, or a promise — that makes an agreement a binding contract. A promise with nothing given in return is generally just a gift, and gifts aren't enforceable.
Courts don't enforce every promise; they enforce bargains. Consideration is the legal word for what each party puts in: your payment for their services, your promise to deliver for their promise to pay. It's why "I'll give you my car someday" isn't enforceable but "I'll sell you my car for $500" is. Courts almost never weigh whether the deal was fair — a dollar can be consideration — but they do care that something real moved both ways. This shows up practically in contract modifications (a change to only one side's obligations can be unenforceable) and in non-competes signed mid-employment, where several states require new consideration beyond just keeping your job.
Payment isn't required — mutual promises are enough. What's required is that each side gave or promised something of value.
It recites that consideration exists. Courts often accept the recital, but if genuinely nothing moved, the recital alone may not save the contract in every state.
Before you sign anything, Main AI reads every clause, flags one-sided terms, and cites the rules behind each risk.
Run a free document check →