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Quid pro quo, or the exchange of valuable consideration, is required for the formation of a valid contract between individuals who are not merchants. This requirement of mutual consideration, or the exchange of something of value, indicates the sincerity of the parties' intent to adhere to the contract between them.
From a legal perspective, quid pro quo indicates that a good or service has been traded for something of equal value. In particular, quid pro quo is used explicitly to indicate that there has been consideration in a contract, meaning that there are goods or services being delivered and that acceptable payment is made for these goods or services. Without consideration, or quid pro quo, for example, a contract may be determined to be nonbinding and invalid.