What is the legal effect of consideration in a contract?

The legal effect of consideration in a contract is that it is essential for enforceability. Consideration refers to something of value that is exchanged between parties in a contract, which can be money, services, or even a promise to refrain from doing something. Without consideration, a contract generally lacks legal binding power, meaning that a court will not enforce it. This is because consideration demonstrates that both parties have entered into the agreement willingly and are providing something of value to one another, establishing a mutual obligation. Therefore, for a contract to be valid and enforceable, there must be consideration; otherwise, it may be considered a gift and not legally binding. The other options do not align with the fundamental principles of contract law concerning consideration.