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
Exam trap
Tested in
Contracts & Agency (13% of the exam)
From definition to recall
See this term inside a real exam question.
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This definition is Texas 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.