{"id":26896,"date":"2022-09-05T03:28:18","date_gmt":"2022-09-05T03:28:18","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/amjur\/contracts-sect-101.html"},"modified":"2022-11-28T06:50:58","modified_gmt":"2022-11-28T06:50:58","slug":"contracts-sect-101","status":"publish","type":"amjur","link":"https:\/\/reference.findlaw.com\/amjur\/contracts-sect-101.html","title":{"rendered":"Am Jur 2d – Contracts \u00a7 101"},"content":{"rendered":"
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II. Formation of Contracts, D. Consideration, 1. In General; Necessity, \u00a7 101 – Definitions and nature<\/h2>\n

Utilizing a legal definition of contract, no contract exists without sufficient consideration.[1<\/a>] Consideration may be a benefit to the promisor or a detriment to the promisee.[2<\/a>] It may take the form of a right, interest, or profit accruing to one party, or some forbearance, detriment, or responsibility given, suffered, or undertaken by the other.[3<\/a>] It may also consist of the creation, modification, or destruction of a legal relation.[4<\/a>]<\/p>\n

There is consideration for a contract if the promisee, being induced by the agreement, does anything legal that he or she is not bound to do, or refrains from doing anything that he or she has a right to do. It is sufficient that something valuable flows from the promisee, or that he or she suffers some prejudice or inconvenience, and that the agreement is the inducement to the transaction.[5<\/a>]<\/p>\n

Consideration is, in effect, the price bargained[6<\/a>] and paid for a promise[7<\/a>]-that is, something given in exchange for the promise.[8<\/a>] Consideration is what distinguishes a contract from a gift.[9<\/a>]<\/p>\n

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Observation:<\/div>\n

In some jurisdictions, consideration is defined by statute.[10<\/a>]<\/p>\n<\/div>\n

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All case links go to Westlaw and require login.<\/h2>\n<\/div>\n

1<\/a> \u00a0 \u00a7 1<\/a> <\/span>.
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2<\/a> \u00a0 Cigna Health and Life Insurance Company v. Audax Health Solutions, Inc., 107 A.3d 1082 (Del. Ch. 2014)<\/a> <\/span>; AM General LLC v. Armour, 46 N.E.3d 436 (Ind. 2015)<\/a> <\/span>; Averitt Exp., Inc. v. Collins, 172 So. 3d 1252 (Miss. Ct. App. 2015)<\/a> <\/span>; Dee v. Rakower, 112 A.D.3d 204, 976 N.Y.S.2d 470 (2d Dep’t 2013)<\/a> <\/span>; Nuszen v. Burton, 2016 WL 1072489 (Tex. App. Houston 14th Dist. 2016)<\/a> <\/span>.
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3<\/a> \u00a0 Becker v. Colonial Life Ins. Co., 153 A.D. 382, 138 N.Y.S. 491 (2d Dep’t 1912)<\/a> <\/span>; Northern Nat. Gas Co. v. Conoco, Inc., 986 S.W.2d 603, 36 U.C.C. Rep. Serv. 2d 1011 (Tex. 1998)<\/a> <\/span> (surrender of a legal right); First Nat. Bank of Gallipolis v. Marietta Mfg. Co., 151 W. Va. 636, 153 S.E.2d 172 (1967)<\/a> <\/span>.
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4<\/a> \u00a0 Restatement Second, Contracts \u00a7 71(c)<\/a> <\/span>.
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5<\/a> \u00a0 Clausen & Sons, Inc. v. Theo. Hamm Brewing Co., 395 F.2d 388 (8th Cir. 1968)<\/a> <\/span>.
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6<\/a> \u00a0 Laflamme v. Hoffman, 148 Me. 444, 95 A.2d 802 (1953)<\/a> <\/span>; In re Sadler’s Estate, 232 Miss. 349, 98 So. 2d 863 (1957)<\/a> <\/span>.
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7<\/a> \u00a0 Howard College v. Turner, 71 Ala. 429, 1882 WL 1256 (1882)<\/a> <\/span>; In re Sadler’s Estate, 232 Miss. 349, 98 So. 2d 863 (1957)<\/a> <\/span>; Coast Nat. Bank v. Bloom, 113 N.J.L. 597, 174 A. 576, 95 A.L.R. 528 (N.J. Ct. Err. & App. 1934)<\/a> <\/span>.
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8<\/a> \u00a0 Phoenix Mut. Life Ins. Co. v. Raddin, 120 U.S. 183, 7 S. Ct. 500, 30 L. Ed. 644 (1887)<\/a> <\/span>; In re Sadler’s Estate, 232 Miss. 349, 98 So. 2d 863 (1957)<\/a> <\/span>.
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9<\/a> \u00a0 Deli v. Hasselmo, 542 N.W.2d 649, 106 Ed. Law Rep. 876 (Minn. Ct. App. 1996)<\/a> <\/span>; McLeod v. Sandy Island Corp., 265 S.C. 1, 216 S.E.2d 746 (1975)<\/a> <\/span>.
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10<\/a> \u00a0 Horton v. Kyburz, 53 Cal. 2d 59, 346 P.2d 399 (1959)<\/a> <\/span>; Clements v. Jackson County Oil & Gas Co., 1916 OK 943, 61 Okla. 247, 161 P. 216 (1916)<\/a> <\/span>.
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Read this complete Am Jur 2d section on Westlaw<\/a><\/b><\/div>\n","protected":false},"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","_cloudinary_featured_overwrite":false},"class_list":["post-26896","amjur","type-amjur","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/reference.findlaw.com\/legal-api\/wp-json\/wp\/v2\/amjur\/26896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/reference.findlaw.com\/legal-api\/wp-json\/wp\/v2\/amjur"}],"about":[{"href":"https:\/\/reference.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/amjur"}],"wp:attachment":[{"href":"https:\/\/reference.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=26896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}