Consideration: The Basics of Consideration and the Bargain Theory

This lesson takes a look at the basic aspects of the contractual element of Consideration. In a typical transaction, the consideration (described as a bargained-for-exchange) is what induces the making of the promise by the offeror. In turn, the promise induces the furnishing of the consideration by the offeree. Consideration is the ordinary means for justifying the enforcement of the promises by the parties. This lesson sets out the basic requisites for establishing consideration. The general attributes of formation of contracts (mutual assent, offer and acceptance) are covered in other lessons.