Consideration Consideration is an essential element for the formation of a contract. Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.Consideration may be a promise to perform a certain act -- for example, a promise to fix a leaky roof in return for a payment of $1,000 -- or a promise not to do something, such as build a second story on a house that will block the neighbor's view (in return for money or something else).