term:

Consideration

consideration n

: something (as an act or forbearance or the promise thereof) done or given by one party for the act or promise of another see also contract compare motive NOTE: Except in Louisiana, consideration is a necessary element to the creation of a contract. The consideration must result from bargaining by the parties, and must be the thing that induces the mutual promises.

ad·e·quate consideration
: a consideration that is reasonably equivalent in value to the thing for which it is given

fair consideration
: a consideration that is reasonable and given in good faith
;specif
: something with a reasonably equivalent value that under the laws of fraudulent conveyances is given in good faith in exchange for the transfer of property

good consideration
1 : a consideration based on a family relationship or natural love and affection
2 : valuable consideration in this entry NOTE: When used as defined in sense 1 good consideration is the opposite of valuable consideration. However good consideration is also sometimes used to mean valuable consideration. Good consideration of the kind denoted by sense 1 cannot create an enforceable contract.

new consideration
: something according to section 6-106 of the Uniform Commercial Code that becomes payable in exchange for the transfer of bulk goods

nominal consideration
: consideration consisting of a nominal amount

past consideration
: something that has already been given or some act that has already been performed that cannot therefore be induced by the other party's thing, act, or promise in exchange and is not truly a consideration

valuable consideration
: a consideration that confers some benefit having pecuniary value on one party to a contract or imposes a detriment having pecuniary value on the other

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.