Define: Good Consideration

Good consideration refers to something of value given in exchange for a promise or performance in a contract, which forms the basis of a legally binding agreement. Unlike valuable consideration, which involves monetary payment or a tangible benefit, good consideration may include intangible benefits, promises, or acts of kindness that hold significance to the parties involved. Examples of good consideration might include love and affection, moral obligations, or promises to perform acts without any immediate financial benefit. While the law generally requires consideration to support a contract, the adequacy of consideration, whether good or valuable, is typically not scrutinised, as long as it has some discernible value to the parties involved.

A consideration founded on love or affection; usually found in a gift deed. In most cases good consideration is not considered sufficient to form a contract, however.

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: 29th March 2024.