consideration definition

consideration

Something with monetary value, voluntarily exchanged for an act, benefit, forbearance, interest, promise, right, or goods or services. In banking, the loan-amount is a consideration, in exchange for the borrower's promise to repay the principal and to pay interest and other charges. In insurance, the insurance company's offer to make a loss good is a consideration in exchange for payment of premium. Essential element of all enforceable commercial-contracts, it does not have to be 'adequate' or equal in value to the exchanged item but must be legal (not in violation of any law). Any commercial contract without a valid (valuable and legal) consideration is invalid and is called 'nudum pactum' (Latin for, naked contract) governed by the legal maxim 'ex nudo pacto non oritur actio' (Latin for, a right of action does not arise from a naked contract). See also good consideration, and valuable consideration.

consideration is in the Agreements & Contracts and Corporate, Commercial, & General Law subjects.

consideration appears in the definitions of the following terms: licensing agreement, buyer, deed of gifts, consultative decision making, special conditions, externalities, developmental license, quid pro quo, consultation, housekeeping and

consideration appears in the other terms: good consideration, executory consideration, annuity consideration, executed consideration, nominal consideration, valuable consideration

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