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A legal contract is predicated on two parties freely entering into an exchange of something for value. There has to be an offer, and the offer will set the terms. The other party can agree to the offer and accept or make a counteroffer, which functions as a new offer that the first party can once again accept or reject and counteroffer. The offer itself, however, has to contain terms which contemplate an exchange of value, thats called bargain for exchange. This element is often called consideration as well. Consideration simply means both parties expect to get something of value from this deal. The concept of consideration, or bargain for exchange is directly linked to our ideas about why contracts are beneficial for society in general. The opposite of consideration or bargain for exchange would be a gratuitous promise or promise to give a gift. And other than the good feeling you get from giving a gift to someone else, theres nothing of value per se i