If no consideration is included in a contract, the contract becomes invalid and the courts may refuse to perform the contract. Sometimes a contract cannot be considered, even if, on the surface, it seems that the parties are trading something valuable. The legal definition of consideration is based on the notion of “negotiated exchange”. This means that both parties get something they have agreed upon, usually something of value for something of value. If one party does not provide the promised consideration, the other party may terminate the contract. The defaulting party may also be sued for damages or specific performance. One wonders why a case could arise when the legal consideration was so small, but there are actually cases where people want to transfer goods, goods or services in exchange for a very small consideration. Those involved in such transactions want to ensure that they are recognized as valid. Legal counterpart refers to the exchange of two or more things of value in a legally binding contract. Typically, the money or currency in these contracts is exchanged for some type of goods or services. For a contract to be valid, it must be taken into account. In general, a conditional consideration is a valid consideration.
The reason why both exist in common law jurisdictions is considered by leading scholars to be the result of the combination of two different sons by 19th century judges. First, the requirement of consideration was at the heart of the Assumpsit action, which arose in the Middle Ages and remained the normal action for breach of a simple treaty in England and Wales until 1884, when the old forms of action were abolished; second, the concept of agreement between two or more parties as the essential legal and moral basis of the contract was promoted in all legal systems by the 18th century French writer Pothier in his Traité des Obligations, which (especially after its translation into English in 1805) was widely read by English judges and jurists. The latter corresponded well to the fashionable theories of the will of the time, particularly John Stuart Mill`s influential ideas on free will, and grafted onto the traditional requirement of customary law to justify an action for acceptance. [26] No. 1) Payment or money. (2) As an essential element of contract law, consideration is an advantage that must be negotiated between the parties and is the essential reason for the conclusion of a contract by a party. The consideration must have value (at least for the parties) and is exchanged for performance or promise of performance by the other party (this performance itself is consideration). In a contract, a consideration (given thing) is exchanged for another consideration. Not doing an action (abstaining) can be a consideration, for example: “I`m going to pay you $1,000 not to build a road next to my fence.” Sometimes the consideration is “nominal,” meaning it is only indicated for the form, such as “$10 in exchange for transfer of ownership,” which is used to hide the actual amount paid.
Contracts may become unenforceable or cancelled (cancelled) for “non-compliance” if it is determined that the intended consideration is worth less than expected, damaged or destroyed, or that the service is not properly performed (e.g., if the mechanic does not operate the car properly). Acts that are so unlawful or immoral as to be contrary to established public policy may not be used as a counterpart to enforceable contracts. Examples: prostitution, gambling, where prohibited, hiring someone to break a skater`s knee or getting someone to break an agreement (getting someone to withdraw from a promise). Consider the above situation of the uncle. If the same uncle had instead made the following offer to his 13-year-old nephew: “If you had made the following offer before your 21st birthday. birthday doesn`t smoke cigarettes, drink alcohol, curse or play cards for money (gambling), so I`ll pay you $5,000. On the nephew`s 21st birthday, he asks the uncle to pay, and this time the nephew can win in the next trial. [35] Although the promise not to drink alcohol or gamble before the age of 21 was not a valid quid pro quo (it was already prohibited by law), most states allow smoking at 18 and swearing, while some consider vulgar not illegal at any age. Although smoking is prohibited by law until the age of 18, it is legal for people over the age of 18, and therefore the promise to abstain from it has legal value. However, the uncle would still be exempt from liability if his nephew drank alcohol, although this consideration was worthless because it was combined with something of legal value; Therefore, compliance with the entire collective agreement is necessary. If A signs a contract with B so that A cancels B`s house for $500, A`s consideration is the painting service of B`s house, and B`s consideration is $500 paid to A. If A signs a contract with B not to repaint his own house in a color other than white, and B pays A $500 a year to maintain that agreement, there is also a consideration.