As the good saying goes: „No consideration, no contract“! A contract that states that there is a good and valuable counterpart does not create or make it legally valid. Valuable consideration is a necessary element of a contract that gives an advantage to the other party. Contracts and courts generally use the term „valuable consideration“ to refer to sufficient consideration to maintain an enforceable agreement. For example, in a contract for the sale of goods, the money paid is the valuable consideration for the seller, and the property sold is the consideration for the buyer. The moral of the story is that if your contract recites the quid pro quo entirely, you should not include language like „and other good and valuable considerations“ to avoid problems of interpretation. Later, we will discuss what it really means to say in a treaty that there are considerations when there are none. Essentially, the parties recognize and acknowledge that there is consideration and that the consideration is good. Home » Dictionary » Valuable consideration (as opposed to nominal consideration) Saying that the consideration is „good“ means that the legal instrument, contract, deed, agreement or transaction provides sufficient consideration to the parties. The first aspect of the sentence to consider is a „good“ consideration. Consideration of a certain economic value, as opposed to a purely nominal consideration. For a contract to be valid, the consideration must be „sufficient“ and, as such, valuable consideration is often used as a means of determining whether a contract is valid by asking whether the consideration is „valuable“ in any way (not necessarily monetary) to one or both parties. A valuable consideration is not necessarily a counterparty that a market would value, but a consideration that the parties would have valued and appreciated when they requested or accepted it. Typically, a value consideration refers to the exchange of a sum of money for something else of value.

Why say „good“ and „precious“ consideration? For example, when selling a property, the valuable consideration is the amount of real money that the buyer pays to the seller. If you see in contracts an expression formulated as „in exchange for valuable consideration“, the author of the contract or the party to the design refers to the actual exchange of „goods“ or „value“. So what is the legal significance of a good and valuable consideration? Consideration is one of the pillars of contract law that is necessary for a contract to be concluded and considered legally binding. The most important thing to keep in mind is that consideration is something that is present or not. In the early cases of COMMON LAW, a nominal consideration was sufficient to establish a contract. The consideration could be as small as a peppercorn or a penny, provided it is proven that the parties intend to reach an agreement. Eventually, the courts developed the need for valuable consideration, but what constitutes it has changed over time. Valid considerations do not necessarily have to correspond to the value of what is received, and they do not necessarily have to be able to be translated into dollars and cents. It is enough that the consideration consists of a service or value proposition that the celebrity (the person making the promise) considers valuable.

It is not strictly necessary for the person to whom the consideration changes to be favoured if the person from whom he is moving is violated in the legal sense. The breach may consist of your refusal to pursue or exercise a legal claim for a disputed claim. The change of position is considered a disadvantage, which constitutes a consideration independent of the real value of the right abandoned. Based on this evidence, the court concluded that it was not a dollar, but $1,000 that was owed. In Chappell & Co Ltd v. Nestlé Co Ltd [1960] AC 97, Lord Somervell expressed that there is a „valuable“ consideration when the promising person attaches importance or demands it, and this can be distinguished from the actual constructive value of an object: the „precious consideration“. Dictionary, Merriam-Webster, Retrieved 9 January 2022. What happens if there is some form of consideration for the parties, how will the courts interpret the expression of good and valuable consideration if the parties enter into a dispute over the consideration or value of the contract? In this case, the court admitted pararse evidence to prove what „other considerations“ meant. What is the legal value of stating in a contract that the consideration was good or valuable? If the parties enter into a contract that resembles a contract but has not been provided in return, the contract cannot be legally concluded or binding.

Moreover, in the famous case of Carlill v. Carbolic Smoke Ball Co, the disadvantage of using the smoke ball was considered an appropriate consideration of the promise of money if it was ineffective in preventing disease. In general, consideration consists of the promise to take a desired action or the promise to refrain from an action to which one is legally entitled. Therefore, a person who attempts to fulfill a promise must have paid money or committed to pay money, delivered goods, spent time and labor, or renounced any other profitable activity or legal claim. For example, in a contract for the sale of goods, the money paid is the valuable consideration for the seller, and the property sold is the consideration for the buyer. A valid consideration refers to a consideration that is valid in accordance with the law. It is a consideration that gives one party a financially measurable advantage or imposes a measurable pecuniary disadvantage on the other. Something of value is given or promised by one party for the promise of another. Valuable considerations may include money, work, performance, assets, a promise or abstention from action.

These sample sentences are automatically selected from various online information sources to reflect the current use of the word „valuable consideration.“ The opinions expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us your feedback. As stated in Haden v. Sims, 150 So. 210, 168 Miss. 64 (Miss. 1933), the parties had stated in their deed that the payment would be „a dollar and other considerations.“ The valuable consideration needed to make a contract valid must be a benefit or something of value that is actually exchanged by the parties. `A Contracting Party may determine the counterparty it chooses. A peppercorn does not cease to be a good consideration when it is determined that the promising does not like pepper and will throw away corn. Lord Somervell, Chappell & Co Ltd v Nestlé Co Ltd [1960] AC 97 In many contracts, the phrase „for good and valuable consideration“ appears to be the last statement of his considerations. This is a „good“ consideration because it is something legally permissible and it is good between the parties. For a contract to be valid, consideration must be provided.

You may also see sentences related to other good and valuable considerations, such as: As a result, the parties` statement is worthless unless there is consideration, as there is no binding contract. For example, a good consideration in real estate is when a buyer and seller agree on the terms of buying a home. . In the best case, litigants see no real value in pleading the sentence in court. In other cases, however, there may be problems of interpretation that may be beneficial to one party and detrimental to another. In this case, you must be prepared for litigants and litigants to try to use every word specified in a contract to defend their legal situation. Let`s dive into our contract law and editorial knowledge! The court ruled that it was not a dollar, but $1,000. Essentially, on the basis of the standard rule of interpretation, the court must give meaning to all the provisions of the treaty.