n
Something of value to either
the promisee or the promisor of a contract (usually cash, but also property, a
promise to do something or not to do something, and so on) that is given or
will be given by the promisee to the promisor in exchange for a performance or
a promise of a performance by the promisor. For the contract to be enforceable,
the consideration must be something that the promisee, to his or her detriment
or loss, is giving up, or something that benefits the promisor.
gratuitous consideration
Consider-ation that is neither a detriment or loss to a
promisee nor a benefit to the promisor. For example, the promise to pay for an
item with something that is worthless to both the promisee and the promisor is
gratuitous consideration. A contract based on such consideration is
unenforceable.
illegal consideration
Consideration that contravenes the law, public policy, or
the public interest. For example, the promise to physically harm someone in
exchange for an item is illegal consideration. A contract based on such
consideration is unenforceable.
nominal consideration
Consideration that is so small that it has no meaningful
value in light of the performance or promise that it is being exchanged for.
For example, when buying a $10 million business for only one dollar, the dollar
is nominal consideration. Traditionally, courts did not consider the value of
the consideration when determining the enforceability of a contract, but today
a nominal consideration might be viewed as evidence that the contract is
unconscionable or is, in reality, a gift rather than a contract.
past consideration
Consideration consisting of an act performed or promise
given in the past. For example, the promise to pay a debt that one is already
obligated to pay is past consideration. A contract based on such consideration
is usually unenforceable because, typically, the original performance was done
or the original promise was made for some reason other than to exchange it for
the current performance or promise of the promisor.
sufficient consideration
Consider-ation that is of a great enough value to be
meaningful in light of the performance or promise that it is being exchanged
for.
valuable consideration
Consideration that is of a great enough value to be
meaningful in light of the performance or promise that it is being exchanged
for and that has a measurable financial value to either the promisee or the
promisor.
