Consideration in contract law is the value or benefit given by each party in exchange for the other party’s value or benefit—such as money in exchange for products or services, or mutual promises exchanged. Consideration is often referred to as the bargained-for exchange in which one consideration is exchanged for another consideration.

A mere promise to do or refrain from doing something that lacks consideration in the form of a value or benefit provided by the other party (a return promise) is not a contract and is generally not enforceable. One exception to this rule may be if one party promises to do or refrain from doing something, and the second party relies on that promise to its detriment (by spending money, for example), the detrimental reliance may create an enforceable contract.

And if the consideration for a contract is so insubstantial that it is worthless, the contract is said to be illusory and is not enforceable.

In Louisiana, consideration is a necessary component for the formation of a contract, similar to other states. Consideration refers to something of value that is exchanged between the parties, which can be a promise, an act, a forbearance, or the transfer of a right. Under Louisiana law, a contract must involve a lawful cause and object, and the parties must consent to the contract for it to be valid (Louisiana Civil Code Art. 1966). A contract without consideration, or with consideration so negligible as to be deemed 'illusory,' is generally not enforceable. However, Louisiana recognizes the doctrine of detrimental reliance (also known as promissory estoppel), which can make a promise enforceable even without consideration if one party has relied on the promise to their detriment (Louisiana Civil Code Art. 1967). This means that if a party makes a promise that the other party relies on, causing them to incur expenses or suffer a loss, the promise may be enforced by the courts to prevent injustice. An attorney can provide specific guidance on how these principles apply to individual circumstances in Louisiana.