NosyBeagle
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LSDefine
Simple English definitions for legal terms
Valuable consideration
Read a random definition: financial institution
A quick definition of Valuable consideration:
Valuable consideration: Valuable consideration means that when two people make a deal, they both have to give something that is worth something to the other person. This is important because it makes sure that the deal is fair and that both people are getting something they want. It can be money, things, or services, but it can't be something really small that doesn't really count as payment. If someone doesn't give valuable consideration, it might mean that they are trying to trick the other person, and that's not allowed.
A more thorough explanation:
Definition: Valuable consideration refers to a fair price paid by one party in exchange for something in a contract or sale. It can be monetary or non-monetary, but it must be sufficient to make the contract legally binding.
For example, if you buy a car from a dealership, the money you pay is the valuable consideration. In return, you receive the car. If you agree to clean the dealership's windows in exchange for the car, that would not be considered valuable consideration because it is not a fair exchange.
Valuable consideration is important in contracts because it distinguishes them from gifts. A contract must involve consideration from both parties to be legally binding. Consideration can come in many forms, but it must be sufficient to make the contract enforceable.
Valuable consideration can also be important in cases of fraud. If someone is paid much more than what they sold, it may be evidence of fraudulent activity.