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Simple English definitions for legal terms
bargained-for exchange
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A quick definition of bargained-for exchange:
Term: Bargained-for exchange
Definition: When two people make a deal, they agree to give something to each other. This is called a bargained-for exchange. For example, if you promise to mow your neighbor's lawn, and they promise to pay you $20, that's a bargained-for exchange. Both of you are getting something you want in return for something you're giving.
A more thorough explanation:
Definition: A bargained-for exchange is an agreement between two parties in which one party promises to do something in exchange for something else from the other party.
For example, if you agree to mow your neighbor's lawn in exchange for $20, that is a bargained-for exchange. You are promising to do the work of mowing the lawn, and your neighbor is promising to pay you $20.
In legal terms, this exchange is known as consideration. Both parties must give something of value in order for the contract to be valid.
Another example of a bargained-for exchange is when you sign a lease for an apartment. You promise to pay rent each month, and in exchange, the landlord promises to let you live in the apartment.
These examples illustrate the definition of a bargained-for exchange because in both cases, there is an agreement between two parties in which each party is giving something of value in exchange for something else. This is what makes the contract legally binding.