Define: And Other Good And Valuable Consideration

And Other Good And Valuable Consideration
And Other Good And Valuable Consideration
Quick Summary of And Other Good And Valuable Consideration

Consideration is the act of one person giving or promising something to another person in exchange for something else. It can take the form of an action, a promise, or something valuable. The presence of consideration is crucial for a contract to be legally binding. It must be fair and reasonable, and both parties must agree to it. Without consideration, a contract cannot exist. In parliamentary law, consideration pertains to the discussion and voting process for a motion within a group. In the past, consideration also denoted a court’s decision.

What is the dictionary definition of And Other Good And Valuable Consideration?
Dictionary Definition of And Other Good And Valuable Consideration

Consideration, such as an act, forbearance, or return promise, is something that is exchanged between a promisor and a promisee. It serves as motivation for a person to engage in a legal act and is necessary for an agreement to be enforceable. For example, if a company promises to pay an employee a bonus of £5,000 at the end of the year if certain performance goals are met, the performance goals serve as the consideration for the promise of the bonus. The phrase “and other good and valuable consideration” is often used in contracts to indicate that there is additional consideration beyond what is explicitly stated.

Full Definition Of And Other Good And Valuable Consideration

The phrase “and other good and valuable consideration” is significant in the lexicon of contract law, particularly within British common law. Understanding this term requires an exploration of the foundational principles of consideration in contract law, its historical context, and its practical applications. This overview will dissect the meaning, legal implications, and judicial interpretations of “and other good and valuable consideration.”

The Concept of Consideration in Contract Law

Consideration is one of the essential elements required to form a legally binding contract. It refers to something of value exchanged between the parties involved in a contract. The principle of consideration ensures that agreements have a reciprocal element, making them enforceable by law.

Historical Context

The doctrine of consideration has its roots in English common law, dating back to the 16th century. The case of Sturlyn v. Albany (1587) is often cited as one of the earliest instances where consideration was explicitly recognised as a requisite for enforceability. Cases like Currie v. Misa (1875), in which the court defined consideration as a right, interest, profit, benefit, forbearance, detriment, loss, or responsibility, significantly influenced the concept’s modern interpretation over the centuries.

Definition and Requirements

For consideration to be valid, it must meet certain criteria:

  1. Sufficiency: Consideration must be something of value in the eyes of the law, although it need not be adequate. The courts do not evaluate the economic value but ensure it is legally sufficient.
  2. Bargained-for Exchange: There must be a mutual exchange between the parties. Each party must give and receive something of value.
  3. Legality: The consideration must be lawful. An agreement based on illegal consideration is void.

“And Other Good and Valuable Consideration”

The phrase “and other good and valuable consideration” typically appears in formal agreements and legal documents. It serves as a catch-all term intended to cover any consideration that might not be explicitly listed in the contract.

Legal Interpretations

  1. Broad Coverage: Including “and other good and valuable consideration” ensures that all conceivable forms of consideration are covered. This can include money, goods, services, promises, and other benefits or detriments.
  2. Flexibility: By using this phrase, parties to a contract can avoid disputes over whether specific types of consideration were intended to be included. It provides flexibility and reduces the risk of a contract being voided due to a lack of clearly defined consideration.
  3. Judicial Precedents: Courts have often upheld contracts containing this phrase, interpreting it as a comprehensive inclusion of all forms of consideration. Notable cases include Chappell & Co. Ltd. v. Nestlé Co. Ltd. (1960), where the House of Lords recognised even trivial acts as sufficient consideration if they were part of the contractual exchange.

Practical Applications

In practical terms, the use of “and other good and valuable consideration” can be seen across various types of contracts, including:

  1. Real Estate Transactions: In property transfers, this phrase ensures that all forms of consideration, beyond just monetary payment, are acknowledged. This might include services rendered, other property exchanged, or promises made.
  2. Business Agreements: In mergers and acquisitions, employment contracts, and other business dealings, the term helps encapsulate all possible benefits and obligations, protecting the parties from unforeseen disputes.
  3. Settlements and Releases: In settlement agreements, especially in litigation, this phrase can cover the promise to cease legal action, confidentiality agreements, and other non-monetary forms of consideration.

Judicial Interpretations and Case Law

To fully appreciate the legal significance of “and other good and valuable consideration,” it is instructive to examine how courts have interpreted this phrase in various contexts.

Case Studies

  • Thomas v. Thomas (1842): This early case established that even nominal consideration, such as £1 per year in rent, was sufficient to support a contract. The court emphasised that the adequacy of consideration is irrelevant as long as it is sufficient and has some value.
  • Chappell & Co. Ltd. v. Nestlé Co. Ltd. (1960): Here, the House of Lords held that the wrappers of chocolate bars, though of minimal economic value, constituted valid consideration because they were part of the bargained-for exchange. This case underscored the principle that consideration need not be adequate, merely sufficient.
  • Williams v. Roffey Bros. & Nicholls (Contractors) Ltd. (1990): This case expanded the traditional consideration understanding by recognising practical benefits as valid considerations. The Court of Appeal held that the promise of additional payment for timely completion of work constituted good consideration because it provided a practical benefit to the promisor.

Legal Drafting and Best Practices

Given the broad scope and legal recognition of “and other good and valuable consideration,” legal practitioners often include this phrase in contracts to safeguard against potential disputes. However, its use must be complemented by clear and precise drafting to ensure all parties understand the terms and obligations.

Tips for Legal Drafting

  • Clarity and Precision: While the phrase offers flexibility, it is crucial to specify the primary forms of consideration. This helps avoid ambiguities and ensures that the parties’ primary intentions are documented.
  • Avoiding Redundancy: Use the phrase judiciously to avoid redundancy. It should complement the specified considerations, not replace them.
  • Contextual Relevance: Ensure that this phrase is contextually relevant to the nature of the contract and the relationship between the parties.

Conclusion

The phrase “and other good and valuable consideration” is vital in contract law, providing a broad safety net encompassing all forms of consideration. Its historical evolution, judicial interpretation, and practical application highlight its importance in ensuring the enforceability of agreements. Although it offers flexibility, its use in legal documents requires precise and clear drafting to prevent potential ambiguities and disputes. As contract law continues to evolve, the principle of consideration and phrases like “and other good and valuable consideration” will remain fundamental to creating and enforcing legally binding agreements.

And Other Good And Valuable Consideration FAQ'S

– “And Other Good And Valuable Consideration” is a phrase commonly used in contracts to indicate that something of value, other than money, is being exchanged between parties. It can include services, property, or any other form of consideration that holds value.

– While it is not mandatory to include this phrase in a contract, it is often recommended to ensure that all forms of consideration are clearly stated. This helps avoid any ambiguity or disputes regarding the exchange of value between parties.

– No, “And Other Good And Valuable Consideration” cannot be used to include illegal activities in a contract. Contracts that involve illegal activities are generally considered void and unenforceable by law.

– The description of “And Other Good And Valuable Consideration” should be as specific as possible to clearly outline the nature and value of the consideration being exchanged. Vague or ambiguous descriptions may lead to confusion or disputes in the future.

– Yes, “And Other Good And Valuable Consideration” can be used to modify or amend an existing contract. However, it is important to ensure that the modification or amendment is legally valid and complies with the requirements of contract law.

– No, “And Other Good And Valuable Consideration” is not limited to monetary value only. It can include any form of consideration that holds value, such as services, property, or even promises to perform certain actions.

– Yes, “And Other Good And Valuable Consideration” can be used in non-contractual agreements as well. It helps establish the intention of parties to exchange something of value, even if the agreement does not meet all the formal requirements of a contract.

– While it is not mandatory to use the exact phrase “And Other Good And Valuable Consideration,” it is important to clearly state the consideration being exchanged in a contract. This ensures that all parties are aware of the value being exchanged.

– Yes, “And Other Good And Valuable Consideration” can be challenged in court if there are disputes or disagreements regarding the nature or value of the consideration being exchanged. It is important to have proper documentation and evidence to support the claims made.

– Yes, there may be legal limitations on what can be considered “And Other Good And Valuable Consideration.” For example, certain contracts may have specific requirements or restrictions on the type of consideration that can be exchanged. It is advisable to consult with a legal professional to ensure compliance with applicable laws and regulations.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 13th June 2024.

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