Consideration
Consideration is what each party gives or promises in exchange for what the other gives: money, goods, services, a promise to act or a promise not to. In US contract law, it's generally what turns a promise into an enforceable contract.
Updated November 5, 2026 · 1 min read
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What counts
- Counts: paying for a service, doing the work, agreeing not to compete, giving up a legal claim.
- Doesn't count: something already done before the promise, called past consideration, or a duty you already owed.
- Rarely weighed: courts ask whether something was bargained for, not whether it was a fair price.
Why it matters
A one-sided promise, like a promise of a gift, generally can't be enforced. That's why contracts recite what each side gives, and why some states want fresh consideration, such as a raise or a bonus, before a non-compete signed partway through a job will hold.
An example
A homeowner pays a deposit and promises the balance; the painter promises to paint the house by a set date. Each side's promise is consideration for the other's. If the homeowner later promises a bonus for work already finished, that promise has no consideration behind it.