Consideration Clause In Agreement

Therefore, in view of the above, the mutual commitments set out below and other good and valuable counterparties, whose preservation and sufficiency are recognized, the parties promise and agree in the following way: the use of the expression of good and valuable consideration is doubly stupid. First, reflection is what it is and saying that it has a certain quality will not serve you well unless it actually does. This from Farnsworth on Treaties 157 (3d ed. 2004): We can consider that considerations relating to acts are generally divided into good and valuable reflections. “A good consideration,” says Blackstone (o), “when he speaks of a counterpart to a certificate or scholarship, is like that of natural blood or love and affection when a man grants an estate to a close relative; Based on reasons for generosity, prudence and natural duty. Counterpart clauses are the most frequently used in insurance policies and define the amount due for coverage. These clauses usually also define a payment plan. Other sectors also use counterpart clauses. When used in sectors such as real estate, counterparty clauses impose remuneration on the basis of contractual conditions.

Second, what was in effect in 1834 is this: the distinction between good and valuable consideration is not relevant to regular contracts, i.e. contracts other than acts and other formal contracts. (I leave it to others to determine if it`s still relevant to them.) If you buy 100 widgets from Jones in exchange for my immorable affection, this transaction will not be valid for lack of consideration. It is not for the author to consider something that cannot be envisaged by reciting that it is “envisaged”. Example: “[The Party] expressly acknowledges that the obligations of this Agreement are supported by reasonable and appropriate consideration and that such agreements are appropriate and necessary to protect the legitimate business interests of [the enterprise] in connection with the acquisition.” In certain circumstances, it is possible to postpone the consideration. . . .