To say that the consideration is “good” means that the legal instrument, contract, deed, agreement or transaction provides sufficient consideration to the parties. The valuable consideration required to validate a contract must be a benefit or something of value that is actually exchanged by the parties. What is the legal value of stating in a contract that the consideration was good or valuable? Later, we will discuss what it really means to say in a contract that there is a quid pro quo when in fact there is not. In addition, in the famous case of Carlill v. Carbolic Smoke Ball Co, the disadvantage of using the smokeball was considered an appropriate consideration for the promise of money when it was ineffective in preventing disease. These sample sentences are automatically selected from various online information sources to reflect the current use of the word “valuable consideration”. The views expressed in the examples do not represent the views of Merriam-Webster or its editors. Send us your feedback. In contract law, consideration is required to induce the conclusion of a contract, which is enforceable in court. This is an essential element for the conclusion of a contract. However, what is given sufficient scrutiny is the subject of ongoing legal debate. Contracts and courts generally use the term “valuable consideration” to refer to consideration sufficient to maintain an enforceable agreement.
Home » Dictionary » Valid consideration (as opposed to nominal consideration) Consideration is one of the pillars of contract law required for a contract to be considered justified and legally binding. Valuable consideration is a necessary element of a contract that gives an advantage to the other party. Contracts and courts generally use the term “valuable consideration” to refer to consideration sufficient to maintain an enforceable agreement. For example, in a contract for the sale of goods, the money paid is the valuable consideration for the seller, and the good sold is the consideration for the buyer. n. a necessary element of a contract that confers an advantage on the other party. Valuable consideration can include money, work, performance, assets, a promise or renunciation of an action. (See: Contract, Consideration) If you see wording in contracts that is worded as “for pecuniary interest,” the author of the contract is referring to the actual exchange of “goods” or “value.” As in Haden v. Sims, 150 So. 210, 168 Miss. 64 (Miss. 1933), the parties had stated in their deed that the payment would be “one dollar and another consideration”.
Why do you say “good” and “valuable” considerations? In that case, the court admitted evidence to prove what “other considerations” meant. Contracts are most often taken into consideration. For a contract to be legally binding, a person must consider the purpose, service or other purpose negotiated in a contract. For centuries, governments have required contracts to be considered enforceable because they did not require donations. The courts generally do not force donations because there is no evidence and there is a general consensus that people can change their minds about a gift. In order to distinguish a contract from a gift, the contract must include consideration showing that each party has paid something in exchange for what they receive. The counterpart can take many forms and does not need to be equivalent, but the counterpart cannot be a small consideration that effectively masks a gift as a contract. For example, it is unlikely that a court will find that a person who agrees to clean a computer screen is considered sufficient consideration to receive a brand new MacBook. A value consideration in contracts is any consideration that sufficiently offsets the products or services exchanged to be considered a binding contract.
Value consideration usually refers to a sufficient price paid by a party in exchange for something in a contract or sale. The “valuable” description of the counterparty may also mean that the consideration is monetary, unlike other payments such as services or the agreement to waive remedies. Essentially, the parties acknowledge and acknowledge that there is a quid pro quo and that the consideration is good. A contract that states that there is good and valid consideration does not legally create or confer valid consideration. In many contracts, the expression `for valuable consideration` appears as the last word in the recitals. In the early days of the common law, nominal consideration was sufficient to enter into a contract. The consideration could be as small as a peppercorn or a penny, provided it demonstrates that the parties intended to reach an agreement. Eventually, the courts developed the requirement for meaningful consideration, but what constitutes it has changed over time. Valuable consideration does not have to have the same value as what is received, and it does not have to be translated into dollars and cents. It is sufficient that the consideration consists of a service or promise that the promisor (the person making the promise) considers valuable. It is not essential that the person to whom the consideration relates benefits if the person from whom it emanates is harmed in the legal sense. The violation may consist of your refusal to sue for a disputed claim or to exercise a legal right.
The change of position is considered a disadvantage which constitutes consideration regardless of the actual value of the right waived. The moral of the story is that if your contract fully reflects the consideration, you shouldn`t include phrases like “and other good and valuable considerations” to avoid problems of interpretation. The first aspect of the sentence to consider is a “good” consideration. Typically, value consideration refers to the exchange of a sum of money for something else of value. For example, a good consideration for real estate is when a buyer and seller agree to the terms of buying a home. You may also see phrases that relate to other good and valuable considerations, such as: In this case, you need to be prepared for litigators and litigators to try to use every word stated in a contract to defend their legal position. If the parties enter into a contract that resembles a contract but no consideration has been provided, the contract cannot become legally concluded or binding. This is a “good” consideration because it is legally permissible and good between the parties. Useful considerations such as terminology may also arise in fraud situations. Many types of fraud are obtained by paying a company much more than it has sold. An exchange in which no valuable consideration has been provided can help prove various criminal offences, especially those involving fraudulent transport. “Valuable consideration Merriam-Webster.com Dictionary, Merriam-Webster, www.merriam-webster.com/dictionary/valuable%20consideration.
Retrieved 9 January 2022. `A Contracting Party may determine the consideration it chooses. A peppercorn does not cease to be a good consideration if it is determined that the Promising does not like pepper and will throw away corn. – Lord Somervell, Chappell & Co Ltd v Nestlé Co Ltd [1960] AC 97 Taking into account a certain economic value as opposed to a consideration which is only nominal. For a contract to be valid, the consideration must be “sufficient” and, as such, valuable consideration is often used as a means of determining whether a contract is valid by asking whether the consideration is “valuable” in any way (not necessarily monetary) to one or both parties.