What do you mean by consideration?

something that is or is to be kept in mind in making a decision, evaluating facts, etc.: Age was an important consideration in the decision. thoughtful or sympathetic regard or respect; thoughtfulness for others: They showed no consideration for his feelings.

What does in consideration of mean in a contract?

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances. In a bilateral contract—an agreement by which both parties exchange mutual promises—each promise is regarded as sufficient consideration for the other.

What is consideration in a contract example?

Anything of value promised by one party to the other when making a contract can be treated as “consideration”: for example, if A signs a contract to buy a car from B for $5,000, A’s consideration is the $5,000, and B’s consideration is the car.

Why is consideration needed in a contract?

When forming a contract, consideration is needed in order to make the agreement a formal, valid contract. Consideration is needed so that both parties incur some sort of burden or obligation in the agreement. Without consideration, the exchange would likely be classified as a gift.

What is in consideration of?

in consideration of something ​Definitions and Synonyms phrase. DEFINITIONS1. in exchange for something, or as a payment for something. She was given a fee in consideration of her services. Synonyms and related words.

What is a consideration clause?

The consideration clause spells out exactly how much premium payments are and when they are due. The legal consideration for a life policy consists of the application and payment of the initial premium. It may also list the effective date.

How is consideration determined?

While the law allows the parties to decide an ‘adequate’ consideration for them, it must be real and have value in the eyes of law. While the Court will not consider inadequacy, it will look at it to determine if the consent was given by the party with free-will or not.

Do contracts require consideration?

In order for any agreement to be deemed legally binding, it must include consideration on the part of every person or company that enters the contract.

What word means to offer for consideration?

vb. 1 bid, extend, give, hold out, proffer, put on the market, put under the hammer, put up for sale, tender. 2 afford, furnish, make available, place at (someone’s) disposal, present, provide, purvey, show.

How do you use the word consideration?

Consideration sentence example

1. Once again someone was making decisions that shaped her life…
2. This last consideration moved him.
3. He had given her respect, consideration and love.
4. She heard a note of hesitation alongside the consideration in his broken voice.

What is an example of consideration?

The definition of consideration is careful thought or attention or compassionate regard for someone or something. An example of consideration is someone deciding between two options for dinner.

What are the basic principles of contract law?

The principles of contract law generally require the parties to a contract to include all the terms and considerations within the “four corners” of the document. Contracts are not required to be in writing, but, when they are, courts will generally not consider external factors when interpreting the contract itself.

What are the legal rules regarding consideration?

Legal Rules Regarding Consideration: Following are the rules as to consideration: Every contract must be supported by consideration: No valid contract can arise without consideration. According to Salmond A promise without consideration is a gift; one made with consideration is a bargain.

What constitutes valid consideration?

What Constitutes Valid Consideration. A promise which discharges an assignor from the claims that an assignee had against the assignor ; A title discharging assignee’s claims against an assignor for selling a mortgage without clearing the earlier mortgage; or A collateral deposit with a surety satisfying a contractor’s obligation…

What is consideration as element of a contract?

The required elements of consideration include: The contract must include a bargain for the terms of the exchange. This means there must be something that is worth bargaining over to both the parties. There must be a mutual exchange between the parties. In simple terms, all parties involved must benefit from the contract. The exchange in the contract must be something of value.