Good and valuable consideration refers to something of value given or promised by one party in exchange for the promise of the other party. It can take the form of an act, forbearance, or return promise that motivates a person to engage in a legal act. Consideration is essential for an agreement to be legally binding and must be fair and reasonable under the circumstances. It can be past, present, or future consideration and may be implied by law from the parties’ actions. However, it cannot be illegal or immoral. Nominal consideration, which is insignificant in relation to the value of what is being exchanged, can still be valid. The term “consideration” is also used to describe the process by which a deliberative assembly disposes of a motion.
Good and valuable consideration refers to the exchange of something of value between parties in a contract. It can be an act, a forbearance, or a return promise that motivates someone to engage in a legal act. Consideration is essential for an agreement to be enforceable and must involve a gain or benefit to one party or a loss or disadvantage to the other party. For instance, if someone promises to sell their car for $10,000, the $10,000 payment is the consideration for the promise. Similarly, if someone promises to mow their neighbour’s lawn in exchange for their neighbour watering their plants while they are away, the act of mowing the lawn is the consideration for the promise. In both examples, there is a mutual exchange of value, which is necessary for a contract to be legally binding.
Good and valuable consideration refers to something of worth that is exchanged between parties in a contract. It can include money, property, services, or any other valuable asset.
Yes, for a contract to be enforceable, there must be a mutual exchange of good and valuable consideration between the parties involved.
No, “good and valuable consideration” must have a tangible value. It cannot be based on intangible factors such as love, affection, or moral obligations.
Yes, “good and valuable consideration” does not have to be substantial. Even a nominal or minimal value can be considered sufficient as long as it meets the requirement of being something of worth.
No, “good and valuable consideration” must be exchanged at the time of contract formation. It cannot be promised or provided after the contract is already in effect.
Yes, “good and valuable consideration” is a fundamental element of a legally binding contract. Without it, the contract may be deemed unenforceable.
In some cases, certain contracts may be exempt from the requirement of “good and valuable consideration.” For example, contracts under seal or contracts made in certain jurisdictions may not require consideration.
Yes, a promise to perform an act or provide a service can be considered “good and valuable consideration” as long as it is something of worth to the other party.
No, a gift is not considered “good and valuable consideration” because it lacks the element of a bargained-for exchange. A contract requires both parties to provide something of value.
If “good and valuable consideration” is absent, the contract may be deemed unenforceable. Without consideration, there is no legal obligation for the parties to fulfill their promises under the 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: 16th April 2024.
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