Law Dictionary

for good and valuable consideration

contract law



In order for a binding contract to exist, certain conditions must be met:

• offer
  
• acceptance
  
• consideration
  
• the intention to create a binding agreement
  

Also in certain other legal situations, good and valuable consideration needs to exist. In the context of law 'consideration' signifies a trade-off, the 'good and valuable' part means that the trade must be for something "of worth" (valuable) and also something permitted and legal (good). The phrase in its entirety means something along the lines of 'in exchange for a trade-off against something legally acceptable and of appreciable worth'.



The currency of the country in which the transaction takes place is the most obvious thing to satisfy the 'good and valuable consideration' test, but an action or ommission of an action that one has the right to do can also be trade-off exchanged.

Source : LawyerIntl.com

Language : English

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