Gratuitous promises are often unenforceable. Consideration is the value each party gives or promises in exchange for the other’s promise or performance, making a contract binding under traditional common-law rules.

It may be a payment, an act, a forbearance, or a return promise. Courts generally do not weigh whether the consideration was adequate so long as something legally sufficient was bargained for. Past consideration and purely moral obligations usually do not count.

Some modern statutes and doctrines enforce certain promises without classic consideration, such as formal sealed instruments in limited places or promissory estoppel. Still, in everyday contract formation, the exchange element remains a central requirement. Clear identification of what each side is giving helps avoid later disputes about enforceability.

• Bargained-for exchange that supports a contract
• Can be act, forbearance, or promise
• Adequacy usually not examined closely
• Distinct from gifts or past benefits