Why Consideration is One of the Most Important Elements of A Contract
I have a client who wants to sue on a contract that he wrote.The
other party did not perform as specified in the contract.
The problem with my client’s contract is that there are a few items missing from the contract.
First of all, when drafting a contract, there needs to be something called consideration.
Consideration basically boils down to, why are you going to perform under the contract.
For example, in a contract to lease space, one party’s consideration is receiving the monthly rent. The other party’s consideration is the space they are leasing.
Thus, both sides are receiving a benefit in exchange for performing under the contract.
Without consideration, legally speaking, there is no contract.
In my client’s case, his contract called for the performance of the other party. However, there was no consideration (or reason) for the other party to perform the contract.
Thus, I had to advise my client that it is not worth bringing the lawsuit as the chances of success are low.
This illustrates why it is in your best interest to hire an attorney to draft your contracts, because eventually someone will breach your contract, and you want to be sure your contract is
enforceable in court.
Watch the video above to learn more .
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