What is a lack of consideration in law?
Lack of Consideration as a Defense
Without consideration, there is no legal contract between the parties. Thus, if a plaintiff sues for breach of contract, a defendant can try to argue that there was no consideration when the contract was formed, so there is no legally valid contract for the plaintiff to sue under.
What does lack in consideration mean?
When there is a lack of consideration, the contract never was valid or enforceable. In contrast, failure of consideration occurs where a valid contract with a valid consideration becomes unenforceable due to the consideration no longer being valuable.
What is without consideration called?
Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law. Previous Next. An agreement made without consideration is void, unless.
What is insufficient consideration?
Inadequate consideration means that something given or promised in exchange for a promise is not fair or reasonable under the circumstances of the agreement. Consideration is something that motivates a person to do something, especially to engage in a legal act. It can be an act, a forbearance, or a return promise.
What is grossly inadequate consideration?
inadequate, the [price paid] [consideration given] must be so disproportionate to the value of what the defendant has given up under the contract that, under the same or similar circumstances, it would shock the conscience of a reasonable person.
What does illusory mean in law?
An illusory promise is a promise that is unenforceable due to indefiniteness or lack of mutuality, where only one side is bound to perform.
What is the synonym of consideration?
1. reflection, contemplation, rumination, attention. 3. kindness, kindliness, concern.
What is lack of due consideration?
Failure of consideration is a technical legal term referring to situations in which one person confers a benefit upon another upon some condition or basis ("consideration") which fails to materialise or subsist. It is also referred to as "failure of basis".
What is another word for under consideration?
Synonyms: being thought over, being discussed, being evaluated, under review.
What is consideration in law?
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 an example of no consideration?
For example, if your friend mows your lawn without asking for anything in return, this does not count as a contract because you have not promised consideration. If your friend promises to mow your lawn but doesn't do it, you can't sue for damages.
What is the opposite of consideration?
Opposite of thoughtfulness and sensitivity towards others. inconsideration. thoughtlessness. disregard. disrespect.
What are the 3 types of consideration?
The main types of consideration in contract law are: 1) Executory consideration, which is an exchange of promises between parties; 2) Executed consideration, where one party performs an act in exchange for a promise by the other party; 3) Past consideration, which is generally not valid as it refers to acts performed ...
What is inadequacy of consideration in a contract section?
The explanation 2 of the section 25 of the Indian Contract Act, 1872 explicitly prescribes that mere inadequacy of consideration does not make a contract void but it can be considered by the courts in order to determine the free consent of the promisor.
What are the four kinds of agreements that lack consideration?
LO6. Identify four kinds of agreements that lack consideration. Four kinds of agreements that lack consideration are (a) barren promises, (b) gratuitous promises, (c) agreements supported by moral consideration, and (d) agreements supported by past consideration.
What is another word for in inadequate?
Other words for inadequate
1. inapt, incompetent; incommensurate; defective, imperfect, incomplete.
What is adequate and inadequate consideration?
If a consideration involves a worthless item or a misleading promise, it is deemed inadequate. The amount or performance given in a consideration must be of a value recognizable by the court. A consideration that violates a public policy, such as prostitution, is deemed inadequate.
What does deemed inadequate mean?
: not adequate : not enough or good enough : insufficient.
What is nugatory in law?
Nugatory means “of no force or effect; useless; invalid,” as noted by the Supreme Court of Michigan, citing Black's Law Dictionary, in their 2007 Apsey v. Memorial Hosp. holding. The court provided the following example: “A statute is rendered nugatory when an interpretation fails to give it meaning or effect.”
What is conjecture in law?
CONJECTURE Definition & Legal Meaning
A slight degree of credence, arising from evidence too weak or too remote to cause belief.
What does ambiguous mean in law?
Ambiguity means language in an agreement has more than one meaning.
What does cogitation mean?
Definition of 'cogitation'
1. concerted thought or reflection; meditation; contemplation. After hours of cogitation he came up with a new proposal. 2. the faculty of thinking.
What is careful consideration?
Britannica Dictionary definition of CONSIDERATION. 1. [noncount] : careful thought : the act of thinking carefully about something you will make a decision about. You should give some serious consideration to your retirement plans. After careful consideration, he agreed to their requests.
Is consideration uncountable?
[uncountable] consideration (for somebody/something) the quality of being sensitive toward others and thinking about their wishes and feelings They showed no consideration whatsoever for my feelings.
What is an example of an illusory consideration?
The contract involving Placer Development (HC 1969) where the promise made to pay a subsidy at a rate to be determined by the Commonwealth is an example of an illusory promise and illusory consideration, as one party had power over redefining the terms of the payment rate and the other party was 'powerless'.
Is a contract void if consideration is inadequate?
The Indian Contract Act of 1872 states that for any contract to be legally binding, consideration should be provided. An agreement without consideration is not considered valid.
What is a synonym for without due consideration?
Without thought or due consideration. stupidly. incautiously. foolishly. senselessly.
What is consideration in legal relations?
Consideration: Something of value must be exchanged between the parties. It must be a valuable benefit, right, interest, or profit that one party receives from the other in exchange for entering the contract. It could be in the form of goods, services, or even a promise to do or not to do something.
What is adequate consideration?
What Does “Adequate Consideration” Mean? For a contract to be enforceable in a court of law, the consideration that is exchanged must be deemed “adequate.” This means that the mutual exchange must involve a fair price in comparison to the promise that is made in exchange for it.
What is an unconscionable contract?
Unconscionable is an adjective that means without a conscience; unscrupulous; so unfair or unjust that it shocks the conscience. The adjective is frequently used in the context of contract law for contracts that have grossly oppressive and unfair terms. When a court finds a contract unconscionable, it is unenforceable.
What is meant by quasi contract?
A quasi contract is a legal obligation—not a traditional contract—which is decided by a judge for one party to compensate the other. Thus, a quasi contract is a retroactive judgment to correct a circumstance in which one party acquires something at the expense of the other.
What is a void agreement in contract law?
A void agreement is one which cannot be enforced by law . Sometimes an agreement which is enforceable by law, i.e., a contract, can become void. Void agreements are different from voidable contracts, which are contracts that may be nullified.
What are the exceptions to consideration in a contract?
Exceptions to consideration under Indian Contract Act include natural love and affection, past voluntary services, promise to pay a time-barred debt, creation of an agency, gifts, bailment and charity.
What is consideration in the UK law?
Put simply, consideration is something that has value in the eyes of the law. It is an essential element of forming a valid contract. In practice, this means there must be an exchange of things that have value for a legally binding contract.
Is consideration necessary in all cases?
Consideration is one of the essential elements of the valid contract under Section 10 of the Indian contract Act. Even section 25 of the Indian Contract Act opens with the declaration that an agreement without consideration is void.
What is sufficient consideration in contract law?
The rule is that consideration must be sufficient but need not be adequate. What this means is that the law requires the parties to have entered into a bargain where each side has provided something of value that the courts can see.
What does without consideration mean?
Without Consideration means, with respect to a transfer of an Option, that the transfer is being made purely as a gift or donation, with no promise or receipt of payment, goods, services or other thing of value in exchange for the Option; provided, however, if the terms of a transfer of Options to an otherwise ...
What is an example of past consideration is no consideration?
Past conduct
Something said afterwards, will not count as consideration. For example, if X promises to reward Y for an act that Y had already performed then while the performance of that act is good consideration, for the promise to be rewarded for it is past consideration and therefore not good consideration.
What is procedural unconscionability?
Procedural unconscionability refers to the unconscionability in how a contract was formed between parties. It could result from one party having a significant advantage over another, i.e., bargaining power and intelligence.
What is the difference between inadequate and lack?
“Lack” - the state of being without or not having enough of something. “Shortage” - a state or situation in which something needed cannot be obtained in sufficient amounts. “Insufficient” - not enough. “Inadequate” - lacking the quality or quantity required; insufficient for a purpose.
What are three synonyms for insufficient?
adjective. inadequate in number of workers or assistants etc. “overcrowded and understaffed hospitals” synonyms: short-handed, short-staffed, undermanned inadequate, unequal.
What is a synonym for inadequate staffing?
inadequate, the [price paid] [consideration given] must be so disproportionate to the value of what the defendant has given up under the contract that, under the same or similar circumstances, it would shock the conscience of a reasonable person.
What is grossly inadequate consideration?
An illusory promise is a promise that is unenforceable due to indefiniteness or lack of mutuality, where only one side is bound to perform.
What does illusory mean in law?
The phrase "insufficiency of consideration is immaterial" means that the law does not typically concern itself with whether the value exchanged is equal or fair. As long as there is some form of consideration, even if it is unequal in value, the contract may still be considered valid.
What does insufficiency of consideration is immaterial mean?
INADEQUATE Definition & Legal Meaning
Insufficient; disproportionate ; lacking in effectiveness or iu conformityto a prescribed standard or measure.
What is inadequate in law?
Definition: Inadequate consideration refers to a situation where the value of the consideration exchanged in a contract is not fair or reasonable under the circumstances of the agreement.
What is the meaning of inadequacy of consideration?
Inadequacy is defined as the condition of not being enough or not good enough. Feelings of inadequacy are when we feel we're not good enough. These feelings generally have nothing to do with our actual performance or abilities in life.
What is the act of being inadequate?
Contumacy refers to a person's refusal to appear in court when they have been legally summoned or their refusal to follow a court order. This refusal can lead to the judge finding the individual in contempt of the court.
What is contumacious in law?
otiose suggests that something serves no purpose and is either an encumbrance or a superfluity.
What does otiose mean in law?
In regards to property law, inure means to vest, which essentially is granting a fixed, immediate right of current or future enjoyment. This is important since it means that an individual now has an absolute right to a current or future interest in something of value.
What does inure mean in law?
A surmise is an idea that someone has based on very little evidence. It's like guessing what might happen without really knowing for sure. In the past, surmise was also used to describe a suggestion made to a court or a statement in a complaint.
What is a surmise in law?
(A legal presumption is a presumption which follows an accepted rule of the courts, irrespective of the dictates of good sense.) A very weak presumption is a guess. A presumption opposed to direct testimony is a conjecture, or, if weak, a surmise.
What is a conjecture or presumption?
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?
What is Consideration? In simple terms, where a promiser has made a promise to a promisee, the latter must in return give the promisor something in order to make the promise binding. That is, consideration is the mutual exchange of promises (see Eastwood v Kenyon (1840) 113 ER 482).
What does consideration mean in law simple?
So, for example, if the claimant contracts to buy a car from the defendant for which the claimant pays in advance, but the defendant does not deliver the car then, because the claimant failed to receive any benefit, the defendant will be required to repay the advance payment.
What is an example of failure of consideration?
The rule is that consideration must be sufficient but need not be adequate. What this means is that the law requires the parties to have entered into a bargain where each side has provided something of value that the courts can see.