What does the term consideration mean as far as the enforceability of an agreement is concerned?
Consideration is what the promisor demands and receives as the price for the promise. The promisor is the person making the promise, and the promisee is the person to whom the promise is made. Consideration consists of something that the promisor is not otherwise entitled to. It is not necessary to use the word “consideration” in a contract. Consideration is the price paid for the promise. When thinking of consideration, think in terms of legal value as opposed to economic value. While economic value (e.g., money) is the most common form of consideration, consideration does not have to involve money. In order for a contract to be enforceable, each party to the contract must change his or her legal position in some way. If an agreement lacks consideration, it is generally not a binding and enforceable contract. I have worked for my employer for five years. Last week, he asked me to sign a document entitled Covenant Not to Compete. In this agreement I promised not to compete with him, re
