Fresh consideration

In contract law, fresh consideration refers to new value or benefit that is provided by each party to a contract for the agreement to be legally binding. It implies that both parties must undertake new obligations or provide something of value that they were not already legally bound to do. This concept ensures that each party has something to gain from the new agreement, validating the mutual exchange. For example, if an existing contract is modified, the changes must be supported by fresh consideration from both sides, such as a revised payment term or additional services provided. Without fresh consideration, the modified agreement may not be enforceable.