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Updated April 13, 2012
"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.
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