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Simple English definitions for legal terms
legally sufficient consideration
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A quick definition of legally sufficient consideration:
Legally sufficient consideration refers to something of value that is exchanged between parties in a contract. This can be an act, a promise, or a forbearance, and it must be fair and reasonable under the circumstances. Consideration is necessary for a contract to be enforceable, and it must be legally sufficient to support the promises made in the agreement. Past consideration, or something given in the past, is not considered legally sufficient consideration. Additionally, consideration that is illegal or immoral is not valid and cannot support a contract.A more thorough explanation:
Definition: Legally sufficient consideration refers to something of value that is exchanged between parties in a contract. This can be an act, a forbearance, or a return promise that motivates a person to engage in a legal act. Consideration is necessary for an agreement to be enforceable. It must be fair and reasonable under the circumstances of the agreement.
Example: A company promises to pay an employee $50,000 per year in exchange for the employee's work. The employee's work is the consideration in this contract. If the company fails to pay the employee, the employee can take legal action to enforce the contract.
Explanation: In this example, the employee's work is the consideration that motivates the company to pay $50,000 per year. The exchange of the employee's work for the company's payment is legally sufficient consideration. If the company fails to pay, the employee can take legal action because the contract is enforceable due to the legally sufficient consideration.