consideration

A legal term used to describe the benefit that a borrower, guarantor, or pledgor receives in exchange for agreeing to repay, guarantee, or pledge security to the bank. Usually, but not always, the consideration is the proceeds of the loan. In some states, a reasonable expectation of benefit can be sufficient. Consideration must involve benefit that is meaningful, which means that the value of the consideration, whether or not it is directly monetary, must be comparable to the benefit. American Banker Glossary

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(for a supply)

Any form of payment in money or in kind for a supply of goods or services, including anything that is in itself a supply. HM Customs & Revenue Glossary

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On the London Stock Exchange, the money value of a transaction (number of shares multiplied by the price). Exchange Handbook Glossary

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consideration con‧sid‧e‧ra‧tion [kənˌsɪdəˈreɪʆn] noun [countable, uncountable]

LAW something of value given by one person or group signing a contract in exchange for something given by the other:

• The rent-free period is consideration for the tenant's building work.

• The seller transfers the property in goods to the buyer for a money consideration, called the price.

• The guarantee was void as having been made for an illegal consideration (= payment that was against the law ) .

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consideration UK US /kənˌsɪd^ərˈeɪʃ^ən/ noun

► [C or U] LAW in a contract, something with financial value that is given in exchange for something else, for example, a bank loan that is made in exchange for the borrower's promise to repay it: »

From the wording of the agreement it was clear that the initial payment was part of the consideration.

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A lack of consideration is one reason why a promise to do something may not be recognized as legally binding by a court of law.

► [C] FORMAL an amount of money as payment for a service: »

He agreed to do the job for a small consideration.