Direct answer
What does Consideration mean?
Something of legal value exchanged as part of a contract.
Exam cue: Look for a bargained exchange, which can be a promise, act, money or another legally sufficient value.
What does it look like in a question?
New York example
A buyer promises to pay the purchase price and the seller promises to convey the property.
Common exam trap
What should you not confuse it with?
Consideration is not limited to the earnest money deposit.
Related contracts and leases terms
AssignmentA transfer of a party's contractual rights or leasehold interest to another person, subject to the agreement and law.ContingencyA contract condition that must be satisfied or waived for a stated obligation to become final or continue.CounterofferA response that rejects an offer and proposes different terms.Executed contractA contract in which the parties have completed the promised performance.Executory contractA contract under which one or more material obligations remain to be performed.LeaseholdA tenant's right to possess real property for the term and under the conditions of a lease.
Sources used2 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
- Real Estate Salesperson 77-Hour CurriculumNew York State Department of StateSupports: Exam scopeSection: Subject 4, The Contract of Sales and Leases
- Real Estate License Law, March 2026New York State Department of StateSupports: DefinitionSection: Department of State reference glossary entry for Consideration
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Put the term back into its full subject.
A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.