In contract law, what is considered "consideration"?

In contract law, "consideration" refers to the mutual exchange of value between the parties involved in a contract. This means that for a contract to be legally binding, each party must provide something of value to the other. This can take the form of money, services, goods, or a promise to do (or not do) something. The requirement of consideration ensures that there is a tangible benefit or detriment for both parties, making the contract enforceable.

The concept of consideration is fundamental because it distinguishes contracts from mere promises or gifts, where no exchange of value occurs. Without consideration, there may be no legal obligation to fulfill a promise, as the law typically recognizes that parties must commit to mutual obligations for the agreement to hold.

In contrast, the other options do not accurately define consideration. While a party's reason for entering a contract is related to their intentions, it does not reflect the exchange of value necessary for a valid contract. Legal capacity refers to an individual's ability to enter into a contract, ensuring they are of suitable age and mental competency. Lastly, a written document detailing the terms of a contract is important for clarity and enforcement, but it is not the essence of consideration itself.