The definition of consideration is careful thought or attention or compassionate regard for someone or something. An example of consideration is someone deciding between two options for dinner. An example of consideration is someone bringing a friend dinner who just had a baby.
Moreover, what are legal considerations?
The special word “consideration” in contract law refers to something that has value in the eyes of the law. Consideration: is an essential element to make a contract. must be provided for a contract to be legally binding.
Also to know is, what are the types of consideration?
There are two forms of consideration:
- executed consideration – where promises made in a contract are delivered immediately (e.g. delivery of goods)
- executory consideration – where promises made in a contract will be delivered in the future (e.g. a commercial property lease)
What is a business consideration?
In business, consideration means one of two things. It’s either synonymous with compensation, or it is a contractual exchange of mutual promises that benefit both parties in a contract. That second definition is the one we are discussing today. Consideration in this sense has to have tangible value.
What is consideration Brainly?
Answer: Definition: In common parlance, consideration refers to something paid to someone in return for something else. … Therefore, consideration can be a promise or performance of an act which the parties to the contract exchange with one another. It is the base of a contract. Explanation: hope it will help u.
What is consideration in business law Slideshare?
Definition of Consideration [Section 2(d) of Indian Contract Act,1872] • “When at the desire of the promisor, promisee or any other person has done or abstained from doing or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration …
What is consideration in law of contract?
consideration, in contract law, an inducement given to enter into a contract that is sufficient to render the promise enforceable in the courts. The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person.
What is consideration in law with example?
Anything of value promised by one party to the other when making a contract can be treated as “consideration”: for example, if A signs a contract to buy a car from B for $5,000, A’s consideration is the $5,000, and B’s consideration is the car.
What is the basic definition of consideration?
Definition of consideration
1 : continuous and careful thought After long consideration he agreed to their requests. 2a : a matter weighed or taken into account when formulating an opinion or plan economic considerations forced her to leave college.
What is the consideration in a business contract?
Consideration refers to the exchange or bargain which is essential for a binding contract. It is the “thing” given by each party to the contract, to the other. Consideration makes promises enforceable.
What is the purpose of consideration?
Key Takeaway. Consideration is—with some exceptions—a required element of a contract. It is the bargained-for giving up of something of legal value for something in return. It serves the purposes of making formal the intention to contract and reducing rash promise making.
Why is consideration important in a contract?
Consideration is one of the most important parts of a contract because it states why each party is joining the agreement. Consideration can be the exchange of money for products or services, or it can be a trade of one type of product for another type of product.