To make a deal in the United States, there has to be something in return. Consideration means that one party exchanges something of value for something of value of the other party. That is, one party provides the other party with something of value in order to induce a promise from the other party or to persuade the other party to fulfill it. If Patty promises David that she will pay him $100, and David promises Patty in return that he will paint her fence, the parties have entered into a contract because they have each exchanged something of value for something of value from the other party. is the one who is uncertain in his height. Such debts often arise when individuals consult professionals in whose offices the exact fees are rarely discussed, or when one party expressly or implicitly agrees to pay the usual or reasonable fees of the other without specifying the exact amount. Certainly, a debt is due, but we do not know how many. (A liquidated debtMonetary obligation whose value is known, on the other hand, an obligation that is fixed to the amount is certain. A debt can be liquidated by being clearly depreciated – “IOU $100” – or by being mathematically verifiable – by ordering $1 per pound of ice cream and delivering 60 pounds; Therefore, the debt liquidated is $60.) If you`re studying contract law in the United States, you`ll likely learn that consideration must be “adequate.” If the consideration is insufficient, a court can say that there is no contract. However, this does not mean that there must be “sufficient” consideration. The counterpart must be “legally” sufficient. Below is an older video about an example of legally inadequate consideration: There are basically six elements that must be present for a contract to be enforceable.
There must be an offer, acceptance of the offer, consideration, legal capacity, reciprocity and the terms and conditions must be legal and must not violate any law or regulation. In this lesson, we focus on the consideration or benefit that each contracting party receives from entering into a contract. In other words, when two parties reach an agreement, both parties must exchange one thing of value for another. A contract is a legally binding document that describes an agreement between two or more parties. Contractual consideration is the benefit that each contracting party receives by entering into a contract. In other words, when two parties reach an agreement, both parties must exchange one thing of value for another. For the quid pro quo to be kept, the promise of both parties must be objective and clear. If a contract does not have valid terms, then the contract has a counterparty default status and never becomes legally binding. Among the cases where a court will declare a contract unenforceable is the fact that there was no consideration. One such case is that a gift cannot be used as consideration in a contract.
If a party demands payment for an action that it is already required to perform, the contract is unenforceable. Since the consideration for such option contracts is symbolic, their indication in the written deed is usually a mere formality and is often never paid; In fact, the consideration of nominal consideration is wrong. Nevertheless, the courts will apply the treaty – precisely because the recital has become a formality and no one objects to the masquerade. Moreover, it would be fairly easy to disrupt a nominal consideration option by falsifying oral testimony that the dollar was never paid or received. In a dispute between oral testimony, where the incentive to lie is strong, and a written document that clearly contains the consent of the parties, the courts prefer the latter. As Article 11.4.1 “Consideration of an Option,” Board of Control of Eastern Michigan University v. State courts show that Burgess is not uniform on this point, and it is a sure practice to always deliver consideration, no matter how nominal. Let`s take a very simple example to show how consideration works.