Throughout the centuries of “common law,” “law books” are replete with court decisions that seek to determine whether “reasonable consideration” was granted to enter into a binding contract. A first-year law student must take a mandatory contract course. Usually, in the very first semester, and many students “even after graduation” do not really understand the concept of what constitutes an appropriate “consideration” for a binding contract. Bilateral agreements bind the two parties at the time when the parties exchange “counterparties”, “promises”. Acceptance of each of the promised “considerations” is considered sufficient consideration in itself. the term used when something is legally sufficient and makes a contract binding. n. 1) Payment or money. (2) As an essential element of contract law, consideration is an advantage that must be negotiated between the parties and the essential reason for the conclusion of a contract by a party.
The consideration must have value (at least for the parties) and is exchanged for performance or promise of performance by the other party (such a service itself is consideration). In a contract, a counterparty (item) is exchanged for another counterparty. Not doing an action (abstention) can be a consideration, such as: “I`m going to pay you $1,000 not to build a road next to my fence.” Sometimes the consideration is “nominal,” meaning it is only given for the form, such as “$10 in exchange for the transfer of the security,” which is used to hide the actual amount paid. Contracts may become unenforceable or voidable due to “non-consideration” (voided by withdrawal) if it is determined that the intended consideration is worth less than expected, damaged or destroyed, or if the service is not properly performed (for example, if the mechanic does not drive the car properly). Illegal or immoral acts to the point of violating established public order may not be used in exchange for enforceable contracts. Examples: prostitution, gambling where it has been banned, hiring someone who breaks a skater`s knee or causes someone to break a deal (persuading someone to withdraw from a promise). In terms of time, considerations may consist of the past, present or future. Those who are present or in the future support a contract that is not invalid for other reasons. History, Kontr. 71.
(a) Contracts. One of the three basic elements of a valid and binding contract. Consideration is the value or benefit on which mutual commitments are based and for which the parties must negotiate. Consideration can take the form of a promise to do something (fix a car) or a promise not to do something (for example, not to smoke on the premises). Something valuable, a consideration, must be exchanged for a valid and binding contract to exist. (B) Contracts. Any compensation paid or any inconvenience suffered by the party from whom it arises. Or it is the reason that motivates the contractual partner to conclude the contract. Viner defines it as something or opportunity that is meritorious and requires mutual compensation in fact or in law. Abr. titmouse. Consideration, A.
A quid pro quo of one kind or another is so absolutely necessary for the formation of a good contract that a nudum pactum or an agreement to do or pay something on the one hand without compensation for the other is legally completely invalid and a man cannot be forced to perform it. But sealed contracts are valid without consideration; Or, perhaps, more precisely, each obligation matters sufficient consideration in itself, although none should be mentioned. Negotiable instruments such as bills of exchange and promissory notes bear prima facie evidence of consideration. 3. The consideration must be an advantage for the party making the promise or for a third party in his case; or a disadvantage suffered at the instigation of the party promising by the party in whose favour the promise is made. 4. The considerations are good, as if they were for natural love and affection; or value if an advantage arises for the party to whom they are granted or if a disadvantage occurs to the party producing them. 5. They are legal, sufficient to support the contract or illegal that make it null and void. If performance is totally impossible, in fact or in law, the consideration is void.
6. A mere moral obligation to pay a debt or to discharge an obligation is sufficient consideration for an express commitment, although there is no legal liability at the time such a commitment was made. However, it should be noted that, in such cases, a good or valuable consideration must have taken place; For example, everyone has a moral obligation to relieve a person in need, but a promise to do so is not legally binding. You are forced to pay a debt that you owe even if you have been released; A promise to settle such a debt is legally binding on the debtor and can therefore be enforced by taking action. 7. In terms of time, a counterpart is either, 1. Executed, something done before the debtor`s promise. In general, performance of consideration is not sufficient to support a contract; but consideration executed on request; or something that needs to be done after such a promise.
three-dimensional. At the same time, as in the case of mutual promises; and 4th place. Continuous review. 8. If the consideration turns out to be wrong and fails, there is no contract; like, for example, if my father, by his will, gives me all his fortune, which is burdened by the payment of a thousand dollars, and I promise to give you my house instead of the inheritance, and you agree to buy it with the inheritance, and before the contract is finished, and I make you a deed for the house, I find out that my father has made a codicil to his will, and this will revoke the gift for you. I am not obliged to fulfill the contract by doing you an act for my house. As you can see, this 3rd element, the “consideration”, is often difficult to understand, which is really an appropriate consideration. “Something (such as a share, abstention or promise of return) that is negotiated for a promisor and received by a promising one; what motivates a person to do something, especially to commit a legal act.
A consideration or substitute such as a reason for preventing promissory notes is necessary for an agreement to be enforceable. “Illegal quid pro quo. An action that, if done, or a promise that, if implemented, would harm the public interest. Harriman, Forts. 101. Any advantage granted or intended to be granted to the Promising by another person to whom the Promisor is not legally entitled, or any damage suffered or agreed to be suffered by that person, except those to which he is legally bound at the time of consent, as an incentive for the promisor. Therefore, doing only what one is already obliged to do is not a “quid pro quo” for a contract. Hogan v. Supreme Camp of the American Woodmen, 146 Fla.
413, 1 Sun.2d 256, 258. The term is sometimes used in the sense of a legally valid consideration; And this then implies valuable or sufficient consideration as well as meritorious consideration. Hodgson vs. Butt, 3 Cra. (United States) 140, 2 L. ed. 391; Long v. Johnson, 24 N.H. 302; Ambl. 598. In general, however, property is used in the antithesis of valid considerations (p.
v.). Nominal consideration. One that is disproportionate to the actual value of the contract or item, such as if a property is described in a deed as being sold for “a dollar,” no real consideration passes, or the actual consideration remains hidden. This term is also sometimes used as a description of an excessive or exaggerated value that is placed on real estate for the purpose of an exchange. Boyd vs. Watson, 101 Iowa 214, 70 N.W. 123; Emmi vs Patane, 220 N.Y.S. 495, 498, 128 Miscellaneous 901. As it is based on natural duty and affection or on a strong moral obligation. Chit.Forts.
7. A reflection for the love and affection maintained by and for a legally recognized diploma. Gay vs. Fricks, 211 Ala. 119, 99 Sun. 846, 847. See also Berry v. Berry, 83 W.Va. 763, 99 p.E. 79.
Consideration means something of value in the eyes of the law, starting with the plaintiff, either beneficial to the plaintiff or detrimental to the defendant.