When there is want of consideration in a contract, it means that no valuable exchange occurred between the parties involved. This implies that one party did not receive anything in return for their promise or agreement, which can render the contract unenforceable or invalid. It should not be confused with failure of consideration, which refers to a situation where something promised was not delivered or provided as agreed upon. For instance, if someone agrees to sell their car to another person for $5,000 but the buyer fails to pay the money, there is want of consideration since the seller did not receive anything in exchange for their promise. Conversely, if the buyer pays the money but the seller fails to deliver the car, there is failure of consideration since the buyer did not get what was promised.
A comprehensive term for all transactions or situations where no inducement to a contract was intended to pass between the parties thereto and, therefore, no legally enforceable contract is created.
Want of consideration refers to the absence of consideration in a contract, which occurs when one party does not receive anything of value in exchange for their promise or obligation. This lack of consideration can render the contract unenforceable.
For instance, if John promises to give Sarah his car without Sarah promising anything in return, this would be considered want of consideration because Sarah did not provide anything valuable in exchange for John’s promise. Similarly, if Tom promises to pay $500 to Jerry for mowing his lawn, but Jerry fails to fulfil his obligation, this would not be want of consideration because Tom promised payment in exchange for the lawn mowing, but Jerry did not fulfil his part. These examples demonstrate how want of consideration can render a contract unenforceable. In the first example, Sarah did not offer anything in exchange for John’s promise, thus lacking consideration. Consequently, John cannot enforce the contract and compel Sarah to provide anything. In the second example, Tom can enforce the contract and require Jerry to either mow the lawn or pay damages since Tom promised payment in exchange for the lawn mowing, but Jerry did not fulfil his obligation.
Want of consideration differs from failure of consideration, which refers to a situation wherein consideration was originally existing and valid but has since become valueless or ceased to exist.
Consideration refers to something of value that is exchanged between parties in a contract. It can be money, goods, services, or even a promise to do or refrain from doing something.
Yes, consideration is a fundamental requirement for a contract to be enforceable. Without consideration, a contract may be considered a mere gift or a gratuitous promise, which is generally not legally binding.
Yes, consideration can be in the form of a promise. It is known as a “promise for a promise” and is commonly seen in bilateral contracts where both parties exchange promises to perform certain actions.
If there is a lack of consideration, the contract may be deemed unenforceable. Courts generally require both parties to provide some form of consideration to ensure fairness and prevent one-sided agreements.
Generally, past consideration is not considered valid in a contract. For a contract to be enforceable, consideration must be given at the time of making the contract, not before or after.
No, contracts made under seal, also known as “contracts by deed,” do not require consideration to be legally binding. The presence of a seal is sufficient to make the contract enforceable.
Yes, consideration does not have to be substantial or equal in value. Even nominal or minimal consideration, such as a token amount of money, can be sufficient to validate a contract.
Yes, consideration can also be in the form of a promise to refrain from doing something. This is known as a “promise to forbear” and is often seen in contracts where one party agrees not to engage in certain actions.
No, consideration must be exchanged between the parties who are directly involved in the contract. It cannot be provided by a third party unless they are a party to the contract themselves.
Yes, parties to a contract can agree to waive or modify the consideration after the contract is formed. However, such changes should be supported by new consideration or be made in accordance with the terms of the original 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: 30th April 2024.
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