Dictionary of Law
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consideration :: legal definition


Consideration - n. 1) payment or money. 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. Consideration must be of value (at least to the parties), and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration). In a contract, one consideration (thing given) is exchanged for another consideration. Not doing an act (forbearance) can be consideration, such as "I will pay you $1,000 not to build a road next to my fence." Sometimes consideration is "nominal," meaning it is stated for form only, such as "$10 as consideration for conveyance of title," which is used to hide the true amount being paid. Contracts may become unenforceable or rescindable (undone by rescission) for "failure of consideration" when the intended consideration is found to be worth less than expected, is damaged or destroyed, or performance is not made properly (as when the mechanic does not make the car run properly). Acts which are illegal or so immoral that they are against established public policy cannot serve as consideration for enforceable contracts. Examples: prostitution, gambling where outlawed, hiring someone to break a skater's knee or inducing someone to breach an agreement (talk someone into backing out of a promise).

See also: contract and Related Law Terms ↓


Related Law Terms

amend :: v. to alter or change by adding, subtracting, or s ... mended pleading statute stipulation
anticipatory breach :: n. when a party to a contract repudiates (reneges ... perform. See also: breach contract
apparent authority :: n. the appearance of being the agent of another (e ... e also: agency ostensible authority
attorney's fee :: n. the payment for legal services. It can take sev ... ees in the particular type of case.
bargain :: n. 1) a mutual agreement or contract between two p ... o: agreement consideration contract
bilateral contract :: n. an agreement in which the parties exchange prom ... also: contract unilateral contract
bill of exchange :: n. a writing by a party (maker or drawer) ordering ... awn on a bank account is a "check."
breach :: 1) n. literally, a break. A breach may be a failur ... breach of trust breach of warranty
breach of contract :: n. failing to perform any term of a contract, writ ... breach breach specific performance
commercial frustration :: n. an unforeseen uncontrollable event which occurs ... rustration of purpose impossibility
condition precedent :: n. 1) in a contract, an event which must take plac ... o the property. See also: condition
contract :: 1) n. an agreement with specific terms between two ... n oral contract unilateral contract
covenant :: 1) n. a promise in a written contract or a deed of ... o compete deed restrictive covenant
damages :: n. the amount of money which a plaintiff (the pers ... liquidated damages special damages
declaratory judgment :: n. a judgment of a court which determines the righ ... ys it. See also: declaratory relief
draft :: 1) n. a bill of exchange or check in which one par ... s. See also: bill of exchange check
grace period :: n. a time stated in a contract in which a late pay ... the contract, i.e. your insurance.
guarantee :: 1) v. to pledge or agree to be responsible for ano ... as some defect. See also: guarantor
implied covenant of good faith and fair dealing :: n. a general assumption of the law of contracts, t ... -long employment. See also: implied
in propria persona :: adj. from Latin "for one's self," acting on one's ... client and an ass for an attorney."
injunction :: n. a writ (order) issued by a court ordering someo ... t. See also: injunctive relief writ
installment contract :: n. an agreement in which payments of money, delive ... n contract failure of consideration
liability :: n. one of the most significant words in the field ... bility joint tortfeasors negligence
limited liability :: n. the maximum amount a person participating in a ... ted damages partnership shareholder
liquidated damages :: n. an amount of money agreed upon by both parties ... airness. See also: contract damages
mistake :: n. 1) an error in comprehending facts, meaning of ... time. See also: contract rescission
novation :: n. agreement of parties to a contract to substitut ... . See also: accord and satisfaction
omission :: n. 1) failure to perform an act agreed to, where t ... of contract negligence reformation
option :: n. a right to purchase property or require another ... ng or upon expiration of the lease.
party :: n. 1) one of the participants in a lawsuit or othe ... y real party in interest respondent
party of the first part :: n. reference in a written contract to identify one ... ies another party to the agreement.
performance :: n. fulfillment of one's obligations required by co ... nce. See also: specific performance
personal services :: n. in contract law, the talents of a person which ... his/her unique ability and product.
promise :: 1) n. a firm agreement to perform an act, refrain ... so: consideration contract covenant
request :: 1) v. to ask or demand a judge to act (such as iss ... n. the act of asking or demanding.
rescind :: v. to cancel a contract, putting the parties back ... celling party. See also: rescission
severable contract :: n. an agreement which is made up of several separa ... e also: breach of contract contract
specific performance :: n. the right of a party to a contract to demand th ... artwork. See also: contract prayer
substantial performance :: n. in the law of contracts, fulfillment of the obl ... also: contract specific performance
third party :: n. a person who is not a party to a contract or a ... beneficiary third-party beneficiary
third-party beneficiary :: n. a person who is not a party to a contract but h ... tract as a third-party beneficiary.
unconscionable :: adj. referring to a contract or bargain which is s ... ee also: adhesion contract contract
unilateral contract :: n. an agreement to pay in exchange for performance ... consideration contract performance
valuable consideration :: n. a necessary element of a contract, which confer ... t. See also: consideration contract
wiretap :: n. using an electronic device to listen in on tele ... invasion of privacy probable cause
Workers' Compensation Acts :: n. state statutes which establish liability of emp ... rs' compensation insurance company.
wrongful death :: n. the death of a human being as the result of a w ... ual beneficiaries (family members).

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - C

C.I.F. :: n. the total of cost, insurance and freight charge ... aid on goods purchased and shipped.
calendar :: 1) n. the list of cases to be called for trial bef ... clerk of the court calendars cases.
calendar call :: n. the hearing at which a case is set for trial. ... g at which a case is set for trial.
call :: n. the demand by a corporation that a stockholder ... assessment on shares already owned.
calumny :: n. the intentional and generally vicious false acc ... 's reputation. See also: defamation
cancel :: v. to cross out, annul, destroy, void and/or resci ... g, so that it cannot be used again.
cancellation :: cancel ... cancel
caning :: n. a punishment for crimes employed in certain Asi ... last century in the United States.
canon law :: n. laws and regulations over ecclesiastical (churc ... nduct with no religious connection.
cap :: n. slang for maximum, as the most interest that ca ... "adjustable rate" promissory note.
capital :: 1) n. from Latin for caput, meaning "head," the ba ... count capital assets stock in trade
capital account :: n. the record which lists all basic assets of a bu ... or the alleged value of good will.
capital assets :: n. equipment, property, and funds owned by a busin ... . See also: capital capital account
capital expenditure :: n. payment by a business for basic assets such as ... y intended to improve productivity.
capital gains :: n. the difference between the sales price and the ... so: basis delayed exchange exchange
capital investment :: capital expenditure ... capital expenditure
capital offense :: n. any criminal charge which is punishable by the ... . See also: bail capital punishment
capital punishment :: n. execution (death) for a capital offense. The U. ... or death. See also: capital offense
capital stock :: n. the original amount paid by investors into a co ... price. See also: corporation stock
capitalization :: n. 1) the act of counting anticipated earnings and ... for conversion into capital assets.