What does consideration refer to in Texas contract law?

In Texas contract law, consideration is defined as something of value that is exchanged between the parties involved in the contract. This exchange is a fundamental element that makes a contract legally enforceable. Consideration can take various forms, such as money, services, goods, or even a promise to refrain from doing something. The key aspect of consideration is that both parties must provide something of value to the other, demonstrating the mutuality and reciprocity involved in the agreement.

This concept serves to distinguish enforceable contracts from mere promises or agreements that lack the necessary value exchange. The presence of consideration ensures that both parties have a stake in the contract and that it is not merely a one-sided promise. In the absence of valid consideration, a contract may be deemed void or unenforceable under Texas law.