An Exchange of Something of Value ("Mutual Consideration") For any contract to be valid, there must be an exchange of something of value. Essentially, there must be an exchange of services or goods in any contract. It can be a promise to pay in the future (which is the usual arrangement), or an immediate payment, or a promise to act (or not to act). Law students know this exchange of something of value as "consideration", but unless you enjoy speaking legalese, just think of it as getting something in return for your offer. For example, if you offer to sell used books to someone for $40, the consideration is books on one side and money on the other side. As noted, the exchange doesn't have to involve money. For example, in the above example, instead of receiving money for the books, you could choose to receive a promise that the other party will refrain from buying books from a certain bookstore, or you could just receive the satisfaction of doing a good deed by giving books to someone who needs them. Whatever you
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- Spring '18
- Professor Obura Oluoch