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ARTICLE · 10 MARCH 2023

What is consideration in a contract?

JB Solicitors
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Consideration is a legal term used to refer to the benefit that parties to a legal agreement or a contract receive.

AustraliaCorporate/Commercial Law
John Bui
John Bui
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Under commercial law and contract law, a critical question that people ask is 'what is consideration in a contract?' In this article we aim to answer the question of what is consideration in a contract.

Essentially, in a valid contract, there are 5 aspects that need to be present.

Sufficient consideration in a contract is one of these 5 elements. The other elements include offer, acceptance, intention to create legal relations, and certainty. So, what constitute consideration in a contract? Let's explore more below.

Contract Law: What Is Consideration in a Contract?

Consideration is a legal term that is used to refer to the benefit that two parties to a legal agreement or a contract receive by entering into the contract. For instance, through a contract one party may promise something of value in exchange for some kind of action or non-action.

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