Why is consideration important? What is executed consideration? The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person.
In the legal system, the term consideration in contract law refers to something of value given to someone in return for goods , services , or some other promise. A valid contract must include consideration for every party involved. In simple terms, consideration is the basic reason a party enters into a legal contract.
To explore this concept, consider the following consideration definition. See full list on legaldictionary. Something of value given in exchange for something else of value , usually in the context of a contract.
In order for a contract or agreement to be legally binding, every party to the contract must receive some type of consideration. In other words, a contract is a two-way street, so each party must receive something of value from the other party or parties. If one or more of these elements are missing, the contract lacks the necessary requirements, it could potentially be deemed invalid by the court.
The required elements of consideration include: 1. (more…)