There are many requirements that are put in place in the United States regarding contracts. This ensures that things are in writing and that fraud attempts or misunderstandings can be avoided as much as possible.
These laws vary slightly from state to state. However, the general law is that any contract that involves goods worth $500 or more, or contracts that are set to exist for more than one year, should be in writing.
What is a consideration?
When a promise is made without asking for anything in return, it is known as a gratuitous promise. A gratuitous promise is not enforceable under the law because of a lack of consideration. This means that there are terms of the contract that make it enforceable.
An example of a gratuitous promise and a consideration
An example of a gratuitous promise is when a person says that they will paint a house, on a certain day, at a certain time. This would not be legally enforceable because there is no consideration involved.
Adding a consideration would mean promising to pay that person for their services. Therefore, a consideration could mean saying that you will pay this person $1,000 to paint your house, as long as they show up between 8 a.m. and 1 p.m. on a specific Friday. This could be written into a legal contract and therefore be enforceable under the law.
Considerations do not only need to involve a monetary benefit, as they can also involve agreements to take certain courses of action if a situation arises. If you would like to learn more about considerations in construction contracts, you should research the area fully.
Source: FindLaw, "Do Construction Contracts Require Consideration?," accessed Feb. 23, 2018