(A) Contracts. One of the three basic prime elements of a valid, binding contract. Consideration is the value or benefit for which the mutual promises are based upon and which the parties are required to bargain for. Consideration can take the form of a promise to do something (repair a car) or a promise not to do something (such as not to smoke on the premises.) There must be something of value, consideration exchanged, in order for a valid, binding contract to exist. (B) contracts. A compensation which is paid, or all inconvenience suffered by the, party from whom it proceeds. Or it is the reason which moves the contracting party to enter into the contract. Viner defines it to be a cause or occasion meritorious, requiring a mutual recompense in deed or in law. Abr. tit. Consideration, A. A consideration of some sort or other, is so absolutely necessary to the forming a good contract, that a nudum pactum, or an agreement to do or to pay any thing on one side, without any compensation to the other, is totally void in law, and a man cannot be compelled to perform it. But contracts under seal are valid without a consideration; or, perhaps, more properly speaking, every bond imports in itself a sufficient consideration, though none be mentioned. Negotiable instruments, as bills of exchange and promissory notes, carry with them prima facie evidence of consideration. 3. The consideration must be some benefit to the party by whom the promise is made, or to a third person at his instance; or some detriment sustained at the instance of the party promising, by the party in whose favor the promise is made. 4. Considerations are good, as when they are for natural love and affection; or valuable, when some benefit arises to the party to whom they are made, or inconvenience to the party making them. 5. They are legal, which are sufficient to support the contract or illegal, which render it void. If the, performance be utterly impossible, in fact or in law, the consideration is void. 6. A mere moral obligation to pay a debt or perform a duty, is a sufficient consideration for an express promise, although no legal liability existed at the time of making such promise. But it is to be observed, that in such cases there must have been a good or valuable consideration; for example, every one is under a moral obligation to relieve a person in distress, a promise to do so, however, is not binding in law. One is bound to pay a debt which he owes, although he has been released; a promise to pay such a debt is obligatory in law on the debtor, and can therefore be enforced by action. 7. In respect of time, a consideration is either, 1st. Executed, or Something done before the making of the obligor’s promise. In general, an executed consideration is insufficient to support a contract; but an executed consideration on request; or something to be done after such promise. 3d. Concurrent, as in the case of mutual promises; and, 4th. A continuing consideration. 8. When the consideration turns out to be false and fails, there is no contract; as, for example, if my father by his will gives me all his estate, charged with the payment of a thousand dollars, and I promise to give you my house instead of the legacy to you, and you agree to buy it with the legacy, and before the contract is completed, and I make you a deed for the house, I discover that my father made a codicil to his will and by it be revoked the gift to you’ I am not bound to complete the contract by making you a deed for my house.
Law Dictionary – Alternative Legal Definition
The inducement to a contract. The cause, motive, price, or impelling influence which induces a contracting party to enter into a contract The reason or material cause of a contract. Insurance Co. v. Raddin, 120 U. S. 183, 7 Sup. Ct 500, 30 Lw Ed. 644; Eastman v. Miller, 113 Iowa, 404, 85 N. W. 635; St. Mark’s Church v. Teed, 120 N. Y. 683, 24 N. E. 1014; Fertilizer Co. v. Dunan, 91 Md. 144, 46 Ati. 347, 50 L. It A. 401; Kemp v. Bank, 109 Fed. 48, 48 C. C. A. 213; Streshley v. Powell, 12 B. Mon. (Ky.) 178; Roberts v. New York. 5 Abb. Prac. (N. Y.) 41; Rice v. Almy, 32 Conn. 297. 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, is a good consideration for a promise. Civ. Code Cal.