What does the promisor demand and receive as the price for a promise?

The concept of consideration is fundamental in contract law and refers specifically to something of value that is exchanged between parties. In this context, consideration is what the promisor demands and receives as the price for their promise. It can take various forms, such as money, services, or a benefit to the promisor. The key aspect here is that consideration is what makes a promise enforceable; without it, a contract may not hold legal weight.

Indemnity, guarantee, and collateral, while they have their own specific meanings in legal and financial contexts, do not represent the reciprocal value exchanged for a promise in a contractual agreement. Indemnity refers to compensation for harm or loss, guarantee pertains to a promise to answer for another's debt or performance, and collateral refers to an asset pledged as security for a loan. None of these capture the essence of consideration in the way that it is defined within the framework of contractual obligations.