Contract Consideration: It’s the Essence and the Cornerstone to the Enforceability of a Contract
Consideration is an important legal term under NJ contract law (it’s not behavior, like “be considerate to one another”). It means something of value is being given in exchange for a promise. Consideration can be money, something of economic value, a promise to do something or a promise not to do something. All parties to a contract must give consideration in order to create an enforceable contract; it is consideration that distinguishes a contract from a gift. Normally, the value of the consideration need not be high. For example, here’s a standard contract phrase that generally suffices to establish valid and enforceable consideration: “For the sum of $1.00, receipt of which is hereby acknowledged and for other good and valuable consideration, the parties agree as follows”. That phrase is good enough to generally find enough consideration to a contract to make that contract enforceable under NJ law.
If you have any questions about New Jersey contract law, then please contact Fredrick P. Niemann, Esq. at firstname.lastname@example.org or call him toll-free at (855) 376-5291. He welcomes your inquiries and you’ll be impressed with the depth of his understanding of contracts.
NJ Contract Law Attorney serving these New Jersey Counties:
Monmouth County, Ocean County, Essex County, Cape May County, Camden County, Mercer County, Middlesex County,
Bergen County, Morris County, Burlington County, Union County, Somerset County, Hudson County, Passaic County