The concept of consideration in the form of a bargain theory suggests that when two individuals make a pledge to one another, and each pledge is made in return for the other, both pledges are deemed valuable. This is what renders a contract legally enforceable. It can be likened to exchanging toys with a friend – if you agree to give them your toy in exchange for theirs, both toys hold value and the exchange is equitable.
The concept of consideration in the bargain theory states that when a promise or performance is exchanged for another promise, it is considered as consideration for that promise. This theory forms the foundation for all bilateral contracts. For instance, if John promises to pay $500 to Mary in return for her promise to deliver a painting, John’s promise to pay $500 serves as the consideration for Mary’s promise to deliver the painting. This theory plays a crucial role in determining the legal enforceability of a contract. If there is no consideration present, the contract is deemed invalid.
The Bargain Theory of Consideration is a legal principle that states that for a contract to be valid, there must be a mutual exchange of promises or something of value between the parties involved.
Consideration can be anything of value, such as money, goods, services, or even a promise to do or refrain from doing something.
Yes, consideration is a fundamental requirement for the formation of a legally binding contract. Without consideration, a contract may be deemed unenforceable.
Yes, consideration does not have to be of substantial value. Even a nominal or minimal amount can be considered sufficient as long as there is a mutual exchange of promises.
Yes, consideration can be in the form of a promise. For example, if Party A promises to deliver goods to Party B, and Party B promises to pay for those goods, both promises constitute consideration.
No, past consideration is generally not considered valid in the Bargain Theory of Consideration. Consideration must be given in exchange for a promise or performance in the present or future.
No, consideration must be exchanged between the parties who are directly involved in the contract. It cannot be exchanged with third parties.
No, consideration must be a mutual exchange of promises or something of value between the parties involved. It cannot be a benefit to only one party.
No, a promise to do something that a party is already legally obligated to do cannot be considered valid consideration. It must involve a new promise or performance.
Yes, consideration can be waived or modified after the formation of a contract if both parties agree to the changes. However, such modifications should be supported by new consideration to ensure the enforceability of the modified contract.
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: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/bargain-theory-of-consideration/
- Modern Language Association (MLA):Bargain Theory Of Consideration. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/bargain-theory-of-consideration/.
- Chicago Manual of Style (CMS):Bargain Theory Of Consideration. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/bargain-theory-of-consideration/ (accessed: May 09 2024).
- American Psychological Association (APA):Bargain Theory Of Consideration. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/bargain-theory-of-consideration/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts