R2d § 71
Requirement of Exchange; Types of Exchange
(1) To constitute consideration, a performance or a return promise must be bargained for. (2) A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.
Professor's notes
Elements: (1) consideration is a performance or return promise that is bargained for; (2) bargained-for means sought by the promisor in exchange for his promise AND given by the promisee in exchange for that promise. Reciprocal inducement is the test.
Hamer v. Sidway operationalizes the detriment side: forbearance from drinking, smoking, gambling counts because the uncle sought it in exchange.
Pennsy Supply v. American Ash tests reciprocal inducement when one side claims gift.
Common misunderstanding: students treat consideration as "benefit to promisor." It is bargained exchange. Detriment to promisee suffices even with no benefit to promisor: the classic Hamer trap. Adequacy is irrelevant (see § 79); only reciprocal inducement matters.
Cases that operationalize this rule
Section 71 states the bargain theory of consideration in its modern form. The focus is not on equivalence of value but on reciprocal inducement: each side must give or promise something in exchange for the other. This section therefore anchors cases involving forbearance, nominal consideration, and gratuitous promises.