What does consideration refer to in a contract?

Consideration in a contract refers to something of value that is exchanged between the parties involved. This is a fundamental element of a legally binding contract, as it ensures that each party is providing something of worth to the other, which can be in the form of money, services, goods, or a promise to perform a certain action. Without consideration, a contract may not be enforceable since there is no incentive for either party to fulfill their obligations.

In the context of the other options, a document signed does not address the essence of what makes a contract binding; it is merely a record of the agreement. A timeline for completion deals with the schedule of performance but does not encompass the principle of value exchange. A legal representative, while important in certain legal situations, does not play a role in defining the consideration aspect of a contract. Thus, the correct answer is rooted in the necessity of value exchange, which is vital for an agreement to be considered legally binding.