What is the definition of consideration in relation to contracts?

Consideration in relation to contracts refers to the value that is exchanged between the parties involved in the agreement. It is a fundamental element of any binding contract, as it represents what each party is willing to give or perform in order to receive something from the other party. This can include money, services, a promise to do something, or the transfer of property.

In the context of contracts, consideration is what makes the contract enforceable. For instance, if one party agrees to pay a sum of money in exchange for the delivery of goods, the money is the consideration for the seller, while the goods are the consideration for the buyer. Without consideration, an agreement may be deemed a mere promise without legal effect.

Other options like legal authority to make decisions, a breach of contract, and documentation of a contract refer to different aspects of contracts and legal agreements but do not capture the essence of consideration, which specifically focuses on the exchange of value that is required to form a valid contract.