Consideration of contract is a legal term used in the process of forming a binding agreement between parties. In simple terms, consideration refers to something of value given by one party to another in exchange for something else. It is an essential element of a contract, and without it, the agreement is not enforceable in a court of law.

To understand the concept of consideration, let`s take an example. Suppose you own a computer repair shop, and a customer comes to you with a broken laptop. You agree to fix the laptop for a fee of $100. In this case, the consideration is the repair service provided by you, and the payment of $100 is the consideration given by the customer. This exchange forms a contract between you and the customer, which is legally binding.

Consideration can either be tangible, such as money, property, or services, or intangible, such as promises to perform a certain action. For instance, if you promise to pay your friend $50 if they help you move to a new house, the promise of payment is the consideration exchanged for their services.

In some cases, the consideration exchanged may not have an equal value. For example, if you sell your car for $5,000, and the buyer agrees to pay you $2,000 upfront and the remaining $3,000 over the next six months, the consideration exchanged is unequal. However, as long as both parties agree to the terms, the contract is enforceable.

It is essential to note that consideration must be something that is legally permissible. For instance, if you agree to pay someone to commit a crime, the contract is not enforceable as the consideration is illegal.

In conclusion, consideration is a vital element of a contract, and without it, the agreement is not enforceable. It refers to something of value exchanged between parties in a legally binding agreement. As a professional, it is crucial to write articles that use the correct legal terminologies and explain concepts in simple terms. This ensures that readers understand the topic without any confusion.