Contracts

    Consideration

    Something of legal value that each party exchanges, which is required for a valid contract.

    Consideration is the thing of legal value that each party gives or promises in a contract, such as money, a promise, or an act. It is one of the four essential elements of a valid contract.

    Consideration must exist, but it does not have to be equal between the parties. Courts generally do not weigh whether the exchange was a good deal.

    On the exam

    Consideration must be present but need not be equal. Each side must give something of legal value.

    Exam trap

    Adequacy is not required. A contract can be valid even if one side seems to get a better bargain, as long as consideration exists.

    Tested in

    Contracts (12% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.