Consideration under American law

Consideration is one of the essential elements of a contract under American law, and it means that both parties exchange something valuable in exchange for something else. It's like trading your toy with your friend for their candy, and both of you are happy with the deal.

In order for a contract to be legally binding, both parties have to offer something of value, and both parties have to agree to give and take something specific. For example, if you want to buy a toy from a store, you offer the seller money, and they agree to give you the toy. Money is the consideration in this case, and the toy is the object of the contract.

Consideration can be anything valuable, such as money, property, a service, or even a promise. Each party must be giving an item of value to the other party. If you want your friend to help you move, you might offer to buy them lunch, and they agree to help you move. Lunch is the consideration in this case, and the assistance moving is the object of the contract.

In summary, consideration is an important part of American contract law that requires both parties to offer something valuable in exchange for something else, and the agreement to give and take for those things. It's all about trading or exchanging valuable items with each other to make sure everyone has something to gain from the deal.