General Partnership Agreements Glossary

"Consideration" means the thing of value that each party to a contract agrees to provide to the other party. It can be anything of value to the other party--for example, the consideration paid by one party could be the price paid, and the consideration provided by the other party would we the goods provided-- and can be negative - e.g., someone promising not to exercise a right of access over somebody else's land in return for a payment would constitute consideration, even if there was no intention of ever using the right anyway.