What is CONSIDERATION? Definition of CONSIDERATION in Black's Law Dictionary - Legal dictionary - Glossary of legal terms.
Practice. A technical term indicating that a tribunal has heard and judicially determined matters submitted to it. Meaney v. State Industrial Accident Commission, 113 Or, 371, 232 P. 789, 791.
Contracts
The inducement to a contract. The cause, mo• tive, price, or impelling influence which induces a contracting party to enter into a contract. The reason or material cause of a contract. 2 Bla. Comm. 443; Cassinelli v. Stacy, 238 Ky. 827, 38 S.W.2d 980, 983.
Consideration is not to be confounded with motive. Consideration means something which is of value in the eye of the law, moving from the plaintiff, either of benefit to the plaintiff or of detriment to the defendant. Patteson, J., in Langd.Sel.Cas.Contr. 168; s. c. 2 Q.B. 851; Miller v. Bank of Holly Springs, 131 Miss. 55, 95 So. 129, 130, 31 A.L.R. 698. "Nothing is consideration that is not regarded as such by both parties." Schlecht v. Schlecht, 168 Minn. 168, 209 N.W. 883, 887. And "price" and "consideration," though sometimes the same, are not always identical. Oregon Home Builders v. Crowley, 87 Or. 517, 170 P. 718, 721.
The "inducement" for a contract is that which influences the act, while "consideration" means the parting with something by the one from whom it moves. E. F. Spears & Sons v. Winkle, 186 Ky. 585, 217 S.W. 691, 692.
An act or forbearance, or the promise thereof, which is offered by one party to an agreement, and accepted by the other as an inducement to that other's act or promise. Poll.Contr. 91.
Any benefit conferred, or agreed to be conferred, upon the promisor, by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered, or agreed to be suffered, by such person, other than such as he is at the time of consent lawfully bound to suffer, as an inducement to the promisor. Hence doing only of what one is already under obligation to do is not "consideration" for a contract. Hogan v. Supreme Camp of the American Woodmen, 146 Fla. 413, 1 So.2d 256, 258.
Any act of the plaintiff (or the promisee) from which the defendant (the promisor) or a stranger derives a benefit or advantage, or any labor, detriment, Jar inconvenience sustained by the plaintiff, however small, if such act is performed or inconvenience suffered by the plaintiff by the consent, express or implied, of the defendant. 3 Scott, 250.
A benefit to the promisor, or a loss or detriment to the promisee. Harris v. Johnson, 75 Wash. 291, 134 P. 1048, 1050; Fowler v. Smith, 24 Ohio App. 324, 156 N.E. 913, 914. Or benefit to a third party. Wellshire Land Co. v. City and County of Denver, 103 Colo. 416, 87 P.2d 1. But nothing is "consideration" that is not regarded as such by both parties. Michael v. Holland, 111 Ind. App. 34, 40 N.E.2d 362, 365.
Some right, interest, gain, advantage, benefit, or profit to one party, usually the promisor, or some forbearance, detriment, prejudice, inconvenience, disadvantage, loss, or responsibility, act, or service given, suffered, or undertaken by the promisee. Exum v. Lynch, 125 S.E. 15, 17, 188 N. C. 392; Furman University v. Waller, 117 S.E. 356, 358, 124 S. C. 68, 33 A.L.R. 615; Robinson v. Oliver, 156 N.Y.S. 896, 898, 171 App. Div. 349; L.R. 10 Ex. 162; Train v. Gold, 5 Pick. (Mass.) 380; Bankers Trust Co. v. Economy Coal Co., 224 Iowa 36, 276 N.W. 16, 20.
Considerations are either executed or executory; express or implied; good or valuable. See defini tions infra.
Adequate Consideration, See Adequate,
Concurrent Consideration. One which arises at the same time or where the promises are simultaneous.
Continuing Consideration. One consisting in acts or performances which must necessarily extend over a considerable period of time.
Equitable or Moral Considerations. Considerations which are devoid of efficacy in point of strict law, but are founded upon a moral duty, and may be made the basis of an express promise.
Executed or Executory Considerations. The former are acts done or values given before or at the time of making the contract; the latter are promises to give or do something in future.
Express or Implied Considerations. The former are those which are specifically stated in a deed, contract, or other instrument; the latter are those inferred or supposed by the law from the acts or situation of the parties.
Express consideration is a consideration which is distinctly and specifically named in the written contract or in the oral agreement of the parties.
Failure of Consideration. See Failure of Consideration.
Fair and Valuable Consideration. See Fair and Valuable Consideration.
Fair Consideration, See Fair Consideration.
Good Consideration. Such as is founded on natural duty and affection, or on a strong moral obligation. Chit.Cont. 7. A consideration for love and affection entertained by and for one within degree recognized by law. Gay v. Fricks, 211 Ala. 119, 99 So. 846, 847. See, also, Berry v. Berry, 83 W.Va. 763, 99 S.E. 79.
Motives of natural duty, generosity, and prudence come under this class. 2 Bla.Comm. 297; Doran v. McConlogue, 150 Pa. 98, 24 A. 357; Mascolo v. Montesanto, 61 Conn. 50, 23 A. 714, 29 Am.St.Rep. 170.
The term is sometimes used in the sense of a consideration valid in point of law; and it then includes a valuable or sufficient as well as a meritorious consideration. Hodgson v. Butts, 3 Cra. (U.S.) 140, 2 L. Ed. 391; Lang v. Johnson, 24 N.H. 302; Ambl. 598. Generally, however, good is used in antithesis to valuable consideration (q. v.).
Gratuitous Consideration. One which is not founded upon any such loss, injury, or inconvenience to the party to whom it moves as to make it valid in law.
Illegal Consideration. An act which if done, or a promise which if enforced, would be prejudicial to the public interest. Harriman, Cont. 101.
Implied Considerations. See Express or Implied Considerations, supra.
Impossible Consideration. One which cannot be performed.
Inadequate Consideration. See that title.
Legal Consideration. One recognized or permitted by the law as valid and lawful; as distinguished from such as are illegal or immoral. The term is also sometimes used as equivalent to "good" or "sufficient" consideration. See Sampson v. Swift, 11 Vt. 315; Albert Lea College v. Brown, 88 Minn. 524, 93 N.W. 672, 60 L.R.A. 870.
Meritorious Consideration. See Good Consideration.
Moral Considerations. See Equitable or Moral Considerations, supra.
Nominal Consideration. One bearing no relation to the real value of the contract or article, as where a parcel of land is described in a deed as being sold for "one dollar," no actual consideration passing, or the real consideration being concealed. This term is also sometimes used as descriptive of an inflated or exaggerated value placed upon property for the purpose of an exchange. Boyd v. Watson, 101 Iowa 214, 70 N.W. 123; Emmi v. Patane, 220 N.Y.S. 495, 498, 128 Misc. 901.
Past Consideration. An act done before the contract is made, which is ordinarily by itself no consideration for a promise. Anson, Cont. 82; Witt v. Wilson, Tex.Civ.App., 160 S.W. 309, 310.
As to time, considerations may be of the past, present, or future. Those which are present or future will support a contract not void for other reasons. Story, Contr. 71.
Pecuniary Consideration. A consideration for an act or forbearance which consists either in money presently passing or in money to be paid in the future, including a promise to pay a debt in full which otherwise would be released or diminished by bankruptcy or insolvency proceedings. See Phelps v. Thomas, 6 Gray (Mass.) 328; In re Ekings, D.C.N.J., 6 F. 170.
Sufficient Consideration. One deemed by the law of sufficient value to support an ordinary contract between parties, or one sufficient to support the particular transaction. Golson v. Dunlap, 73 Cal. 157, 14 P. 576.
Valuable Consideration. See Consideration.
Want of Consideration. See Want of Consideration.
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