What term refers to anything of value in a contract?

Consideration in contract law refers to the value that is exchanged between parties in a contract. It is an essential element for a contract to be legally binding. Consideration can take many forms, including money, services, or goods, and it represents the benefit or value that each party agrees to give up to fulfill the contract. In essence, without consideration, a contract might be deemed unenforceable because there is no incentive or exchange of value prompting the parties to enter into the agreement.

Collateral typically pertains to assets pledged as security for obligations, particularly in loan agreements, but it is not a general term for value in contracts. Liability refers to legal responsibilities or obligations that one party owes to another, and while it can arise from a contract, it does not denote the value exchanged. Equity generally refers to fairness or justice in the distribution of benefits and obligations, especially in legal contexts, but does not denote consideration in contract terms. Therefore, consideration is the correct term that embodies the concept of anything of value in a contract.