Bargain
In one sentence
An exchange where each party gives something of value in return for something else of value.
Plain English
A bargain is the core of any contract: one person gives something (money, goods, or a promise) and the other person gives something back in return. Both sides must feel they're getting something valuable, even if the values aren't equal. The bargain is what distinguishes a real contract from a one-sided gift.
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Example
You agree to sell your used bicycle to a friend for $50. You give the bike, they give the money. This is a bargain because both sides exchanged something of value.
Used in a sentence
“A valid contract requires a bargain where both parties exchange something of value.”
Related terms
Consideration
Something of value exchanged by each party to make a contract binding.
Mutual Assent
Both parties agree to the same contract terms at the same time.
Mutual Consent
Both parties freely agree to the same terms of a contract without pressure or misunderstanding.
Executed Contract
A contract where both parties have fully performed all their obligations.
Quasi-Contract
A court-imposed obligation to pay for benefits received, used to prevent unjust enrichment.
Unjust Enrichment
A legal claim when someone gains money or benefit unfairly at another's expense.
Offer
A proposal to enter into a binding agreement on specific terms.
Acceptance
Agreeing to the exact terms of an offer, creating a binding contract.
This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.