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Law Office of James D. Lynch, PLLC

3000 Joe Dimaggio Blvd #90, Round Rock, TX 78665

info@jimlynchlaw.com

(512) 745-6347

(714) 745-3875

©2020 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.

  • James D. Lynch

Contract tip – Consideration

In order for a contract to be valid, there must be consideration. Consideration is the value exchanged between the parties to a contract. In other words, each party to the contract expects to obtain some benefit in the contractual deal in exchange for giving up something else.


For example, if you and your friend agree that your friend will mow your lawn for $50, this is a valid contract with valid consideration. You are getting the benefit of a nicely-mowed lawn in exchange for giving up $50, while your friend gets $50 in exchange for expending time and effort to mow your lawn.


On the other hand, if you and your friend agree that your friend will mow your lawn for $0, there is no valid consideration. Even if you make your friend sign a professional-looking document agreeing to mow your lawn for free, this would not be a valid contract because it lacks consideration. Your friend still might mow your lawn out of sheer kindness, but your friend is under no legal obligation to do so.


Always ensure your contracts contain valid consideration. If you want to be certain your contracts contain all the proper elements, please contact us and speak to one of our professionals.