The term quid pro quo is often used in business negotiations, but few stop to think what the words really mean. Literally, the phrase means “what for what” or “something for something.”
Used in legal matters, the term means the giving of one valuable thing for another. Typically, quid pro quo describes that which passes between parties to a contract, something which is necessary to render the contract valid and binding, otherwise known as “consideration.” The absence of quid pro quo renders contract enforcement impossible, unless there is a statement in the written agreement that the contracting parties “intend to be legally bound.”
– BBC&B