What does good consideration refer to?

Good consideration refers to something of value that is exchanged as part of a contract. In the context of contracts, it generally involves a legal benefit or detriment that is incurred by each party involved in the agreement.

A promise that holds monetary value can serve as good consideration, as this reflects an exchange of tangible benefits between parties. This could include promises to perform services, pay money, or transfer property. Good consideration may also include intangible assets or feelings in some contexts, provided they are legally recognized; however, the essence of the concept lies in its ability to create a binding agreement.

Therefore, characterizing good consideration strictly as "anything that cannot be converted to valuable consideration" lacks accuracy, as it usually includes components that have defined value in various forms, whether tangible or intangible, that contribute to the execution of a contract.

In practice, good consideration is integral to ensuring that agreements are enforceable under the law, providing the necessary legal framework for any binding contract.