Final answer:
Consideration must be bargained-for and involve a legal detriment to each party. It can be a promise to do something, a promise to refrain from doing something, or the actual performance of an act.
Step-by-step explanation:
In order to meet the contractual requirement, consideration must be bargained-for and involve a legal detriment to each party. Consideration is an essential element of a valid contract, and it refers to something of value that is exchanged between the parties. It can be a promise to do something, a promise to refrain from doing something, or the actual performance of an act.
For example, in an employment contract, the consideration from the employer may be the promise to pay a salary, while the consideration from the employee may be the promise to work for the employer. Both parties are giving up something of value, and this forms the basis of a valid contract.
Consideration does not have to be fair and reasonable according to the reasonable person standard, approximately equal in overall value, or recorded in writing in the contract. However, it must involve a legal detriment to each party and be the result of bargaining between the parties.