What term describes something of value given to another as an inducement for entering into a contract?

The term that describes something of value given to another as an inducement for entering into a contract is consideration. Consideration is a fundamental concept in contract law, as it refers to the benefit or value that each party agrees to exchange in the course of forming a contract. This could take the form of money, services, goods, or anything else that has value to the parties involved.

In the context of a contract, consideration is crucial because it distinguishes a contract from a mere promise; without it, a contract may not be enforceable. Each party must contribute something of value for the contract to be valid. This ensures mutual obligation, where both parties have something to gain or lose.

The other terms do not capture this concept in the same way. An agreement refers to the mutual understanding between parties but does not imply the exchange of value. An offer is a proposal made by one party to another to enter into a contract, and a contract is the final, binding agreement itself. While these are all related to the process of forming contracts, it is consideration that specifically identifies the value exchanged to induce the agreement.