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Without Consideration: Definition, Example and Related Terms

What is Without Consideration ?

In the world of business and contracts, the phrase 'Without Consideration' has a very specific meaning. Imagine you're trading your favorite baseball card with a friend. You give them your card, and in return, they give you theirs. That's a fair trade, right? Both of you are getting something out of the deal. But what if you give your friend the card and they don't give you anything back? That's an example of a transaction 'Without Consideration'.

In more technical terms, 'Without Consideration' means that one party in a contract is not obligated to give anything in return for what they're getting. This is quite rare in business contracts because usually, both parties are expected to benefit in some way.

Imagine an agreement where you promise to do your friend's homework for a whole week and they don't have to do anything in return. It's a great deal for your friend, but not so much for you.

But, in the world of contracts and business, such deals might be made for various reasons. For example, a business might offer services 'Without Consideration' to a charity or as a promotional strategy.


  • Scenario Description
    A company, 'TechPioneers', offers to develop a website for a charity organization 'HelpingHands' free of charge. In this scenario, 'TechPioneers' is providing a service 'Without Consideration'. They're developing a website and not asking for anything in return. This is a charitable act, and it helps 'HelpingHands' because they get a much-needed service without any cost.
    As part of a promotional campaign, a software firm 'SoftCreators' offers a one-year free subscription to their premium services to the first 100 customers. In this example, 'SoftCreators' is providing their premium services 'Without Consideration' to the first 100 customers. They're not expecting any payment or service in return. This is a marketing strategy designed to attract more customers and create a buzz around their product.

Related terms