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 Minnesota, as in other states, consideration is a fundamental component of a valid contract. Consideration refers to something of value that is exchanged between the parties involved in a contract. It can be a payment, service, or even a promise to do or not to do something. The key aspect is that it must represent a bargained-for exchange, where each party receives something that has value to them. Without consideration, a contract may be deemed unenforceable. However, Minnesota recognizes the doctrine of promissory estoppel, which means that if one party makes a promise and the other party relies on that promise to their detriment (such as incurring expenses), the court may enforce the promise even without consideration. This is to prevent injustice due to the relying party's detrimental reliance on the promise. Lastly, if the consideration is so negligible that it can be considered worthless, the contract may be considered illusory and thus unenforceable in Minnesota. This ensures that contracts are based on a true exchange of value and are not just empty promises.