Understanding Business and Personal Law

Chapter 8: Consideration

Chapter Overviews

Ready to Learn?
Consideration is the exchange of benefits and detriments by parties to an agreement. Benefits are things that the party was not previously entitled to receive. Detriments are any losses suffered. Consideration must include three key elements: a bargained-for exchange, something of value, and benefits and detriments must be legal. In some situations, agreements may not require consideration. In this chapter, you will understand the concept of consideration and learn the difference between contracts that require consideration and those that do not.