Something with
monetary value, voluntarily exchanged for an
act,
benefit,
forbearance,
interest,
promise,
right, or
goods or
services. In banking, the loan-amount is a consideration, in
exchange for the
borrower's promise to repay the
principal and to
pay interest and other
charges. In
insurance, the
insurance company's offer to make a
loss good is a consideration in exchange for
payment of
premium. Essential
element of all enforceable commercial-contracts, it does not have to be '
adequate'
or equal in
value to the exchanged item but must be
legal (not in
violation of any
law). Any
commercial contractwithout a
valid (valuable and legal) consideration is
invalid and is called '
nudum pactum' (Latin for,
naked contract) governed by the legal ...
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