Contracts
Something of value exchanged between parties to form a valid contract, typically money, but can be any bargained-for promise or act.
Consideration is one of the essential elements of a valid contract. In real estate, the buyer's consideration is the purchase price; the seller's consideration is the transfer of the property. Consideration does not have to be money: it can be a promise, an act, or forbearance from an act. The amount does not need to be fair, and even nominal consideration (such as $1 and 'other good and valuable consideration') can be sufficient. A contract without consideration is generally unenforceable.
Exam Tip
A valid contract requires consideration from both sides. A deed recites consideration even if the actual amount is nominal. This satisfies the legal requirement.
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Contracts
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NY Real Estate Contracts
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