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Contract Law

Consideration



Consideration must also be present for a legal contract to be formed. The essence of consideration is that a party receives some kind of benefit in return for his promise. Consideration may consist of money, goods, or a promise to do or not do something. The statement "I'll give you my guitar" is not a contract because the giver would receive no specified consideration in return.



When the mutual assent of legally capable parties<--which includes an offer and an acceptance, accompanied by consideration<--to a specific exchange or set of promises occur, a valid contract has been formed.

Additional topics

Law Library - American Law and Legal InformationGreat American Court CasesContract Law - What Is A Contract?, Sources Of Contract Law: The Statute Of Frauds, The Uniform Commercial Code