Consideration: The Essence of a Contract

in New Jersey and

the Cornerstone to the Enforceability of a

New Jersey Contract

Consideration is an important legal term in NJ contract law.  It means something of value is being given in exchange for a promise. Consideration can be money, something of economic value, a promise to do something or a promise not to do something. All parties to a contract must give consideration in order to create a contract; it is consideration that distinguishes a contract from a gift. Generally speaking, without valid consideration, there cannot be an enforceable contract.  Normally, the value of the consideration need not be high.  For example, here's a standard contract phrase that generally suffices to establish valid and enforceable consideration:  "For the sum of $1.00, receipt of which is hereby acknowledged and for other good and valuable consideration, the parties agree as follows:".  That phrase is good enough to generally find sufficient consideration to a contract.

NJ Contract Law Attorney serving these New Jersey Counties:

Monmouth County, Ocean County, Essex County, Cape May County,

Camden County, Mercer County, Middlesex County, Bergen County, Morris

County, Burlington County, Union County, Somerset County, Hudson County,

Passaic County

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