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Consideration
Consideration is the legal term for what each side gives up or promises to give up in a contract, like money, a service, or even a promise not to do something.
What it actually is
Consideration is the bargained-for exchange that makes a promise legally enforceable. In a court case, a party must show that both sides provided something of value (or a promise to do or not do something) to prove a valid contract exists. It appears in breach-of-contract claims where the court examines whether each side actually gave or promised something in return.
Why it matters in your case
If you are sued for breaking a contract, the other side must prove that you received something in exchange for your promise; without consideration, the agreement may be unenforceable. Conversely, if you sue someone, you must show that you gave something of value (or a promise) to support your claim.
The common misunderstanding
Many people think a written promise alone is binding, but without consideration—something given in exchange—a promise is generally not a contract. Also, consideration does not have to be fair or equal; even a small amount or a trivial act can count.
Get the actual rule
Definitions are orientation; rules are authority
This page explains the concept. When it matters to your case, read the rule that governs it in your court — we hold Texas, federal and Washington court rules word for word, and every state's official resources are on the state pages. If someone cites a case at you, check that it exists first.
Related
Terms that travel with this one
General explanation, not legal advice, and not specific to any state — procedures and deadlines vary by jurisdiction and court. If you can get a lawyer or free legal aid, do: every real option.