What type of consideration is required to have actual value in a contract?

In the context of contract law, actual value in a contract necessitates the presence of real consideration. Consideration refers to something of value that is exchanged between the parties involved in the agreement. Real consideration must have tangible, legal value that is sufficient to support the formation of a contract.

For a contract to be enforceable, the consideration must be lawful and not deemed mere pretense or without substance. Real consideration meets these criteria, representing a genuine exchange, while fulfilling the legal requirements for enforceability.

Imaginary consideration lacks substance and cannot provide a basis for an agreement. Illegal consideration is not permissible as it involves value derived from unlawful actions, and public consideration does not create a direct exchange between parties for a contractual obligation. Thus, real consideration is the key element ensuring that the contract is valid and executable.