The legal definition of consideration is based on the concept of a bargained-for exchange. This means that both parties are getting something that theyve agreed to, usually something of value for something of value. Say, for example, that your neighbor admires your bicycle. You know you are moving soon, so you offer (an offer is an element of a contract) to sell it to her for $100 (consideration). She accepts your offer (acceptance is also an element of a contract), but cant pay you until she goes to the bank. So, you scribble a quick note describing both of your intentions to enter into this agreement and hand her a copy of the note. You now have an enforceable contract because the elements of a contract are in place, including this bargained-for exchange. On the other hand, if you tell your neighbor that you will give her the bicycle if you cant sell it at your garage sale, there is no element of consideration because she has not agreed to pay you anything. Your promise to give her the bicycle may be an enforceable promise but it isnt an enforceable contract. Consideration isnt usually an element of a gift.