posted a year ago
"When two parties discuss the terms of a contract, they are each considering what is best for them and trying to agree. This process of negotiation is called "consideration." Each party must be willing to give something up to get something they want. For example, one company might agree to sell other goods at a discounted rate in return for the promise of exclusively getting that company's business.
Consideration must be present in order for a contract to be valid. It does not necessarily have to be equal, but each party must receive something they value in exchange for giving up something else. Consideration can also be referred to as "compensation."