What is defined as something of value exchanged by the parties in a contract?

Consideration is a fundamental concept in contract law, representing something of value that is exchanged between parties to a contract. It is a crucial element that brings a contract into existence and makes it legally enforceable. Consideration can take various forms, including money, services, goods, or a promise to refrain from a certain action.

Without consideration, a contract would be deemed unenforceable because there would be no incentive or exchange for either party to fulfill their obligations. This concept ensures that both parties have a stake in the agreement and adds to the fairness and mutual benefit inherent in contractual relationships.

The other terms listed do not define this exchange of value. Commission pertains to a fee paid for services rendered, usually in real estate transactions, while amendment refers to a change or addition made to an existing contract. An agreement is a broader term for the understanding reached between parties, but it does not specifically denote the exchange of value that is central to the idea of consideration.