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 by a LexisNexis Commercial expert
Published on: 22 June 2016
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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

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Jurisdiction(s):
United Kingdom
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Key definition:
Contract definition
What does Contract mean?

A contract is a legally binding promise (oral or in writing) by one person to fulfil an obligation to another person in return for consideration. A binding contract comprises four elements: offer, acceptance, consideration and intention to create legal relations.

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