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Consideration is the central concept in the common law of contracts and is required, in most cases, for a contract to be enforceable. Consideration is the price one pays for another's promise. Consideration is the price one pays for another's promise.
The consideration conveyed by at least one side seeks to restrain legal proceedings [d] The consideration includes public offices or titles [e] The consideration involves involuntary labour or otherwise infringes upon the personal liberty of a party to the contract [f] The consideration includes a marriage or a pecuniary inducement to marry.
Consideration is an English common law concept within the law of contract, and is a necessity for simple contracts (but not for special contracts by deed). The concept of consideration has been adopted by other common law jurisdictions, including in the United States .
Consideration cannot have already occurred. It must be performed either at or after the formation of contract. Consideration cannot be a pre-existing legal or contractual obligation. Consideration need not be of the same value as the other party's promise. For example, a peppercorn in contract law describes a very small and inadequate ...
Contract law regulates the obligations established by agreement, whether express or implied, between private parties in the United States. The law of contracts varies from state to state; there is nationwide federal contract law in certain areas, such as contracts entered into pursuant to Federal Reclamation Law.
The pre-existing duty rule is an aspect of consideration within the law of contract. Originating in England the concept of consideration has been adopted by other jurisdictions, including the US. In essence, this rule declares that performance of a pre-existing duty does not amount to good consideration to support a valid contract; but there ...
So the contract may be written to reflect that the house is being sold in return for "ten dollars and other good and valuable consideration". The ten dollars is the "peppercorn" that provides concrete consideration and ensures that the contract is valid, while the actual amount paid for the house is hidden and referred to only as the "other ...
An option contract is a type of contract that protects an offeree from an offeror's ability to revoke their offer to engage in a contract. Under the common law, consideration for the option contract is required as it is still a form of contract, cf. Restatement (Second) of Contracts § 87(1).