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Consideration is a benefit or right conferred by one party to a contract on the other party or parties.


Consideration may be a promise to perform a certain act or to refrain from performing a certain act. Consideration must be something of value to the people who are making the contract. Generally, both parties must receive consideration in order for a contract to be valid.

In the case of a Non-compete, for example, consideration may sometimes refer to wage increases, promotions, or continued employment (sometimes including hiring).

In general, a court will not consider the adequacy of the consideration.