Q&As

Must the consideration under a contract be financial, or is there sufficient consideration if one party provides the other with products in exchange for services?

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Published on LexisPSL on 22/06/2016

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Must the consideration under a contract be financial, or is there sufficient consideration if one party provides the other with products in exchange for services?

Must the consideration under a contract be financial, or is there sufficient consideration if one party provides the other with products in exchange for services?

One of the essential ingredients to a contract is that there is valid consideration. This will be established by looking at what one party gives or promises in exchange for what the other party is giving or promising and will only exist if the criteria of benefit and detriment, mutual promises, sufficiency, and economic value are satisfied.

Consideration need not be monetary, but must be sufficient/moneys worth. It must have some economic value but need not be adequate in any commercial

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