Consideration Defined

Consideration requires bargained-for legal detriment; gifts and past acts do not qualify.

Representative cases

• Meincke v. Northwest Bank & Trust Co. 756 N.W.2d 223 · Supreme Court of Iowa
• Rebecca W. Belanger v. Lisa M. Yorke 226 A.3d 215 · Supreme Judicial Court of Maine
• United States Steel Corp. v. Unemployment Compensation Board of Review 858 A.2d 91 · Supreme Court of Pennsylvania

Related Formation rules

• Contract DefinedA contract is a legally enforceable promise formed by mutual assent and consideration.
• Offer RequirementsAn offer is a manifestation of intent to be bound with definite terms communicated to an identifiable offeree.
• Termination of OfferOffers terminate by revocation, rejection, lapse, death, or destruction of subject matter.
• Option ContractsAn option is irrevocable when supported by consideration for a promise to keep the offer open.
• Firm Offers (UCC)A merchant’s signed writing assuring it will remain open is irrevocable for the period stated, up to 3 months.
• Acceptance: Mirror RuleUnder common law, acceptance must mirror the offer; additional or different terms are counteroffers.
• Acceptance by PerformanceUnilateral contracts are accepted only by complete performance.
• Acceptance by PromiseBilateral contracts are accepted by a return promise or beginning performance.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.