Consideration means something of value has to be given. In order for a contract to be legally binding, a promise between the parties involved must be exchanged for consideration. The performance of a contract promise is a duty. And, it cost both sides a lot of money in court. Surprise, surprise: they did not agree on what it meant when it came time for the deal to close. We once handled a $300,000.00+ airplane sale and purchase dispute where the buyer and seller banged out a few sentences on the deal. A well written legally clear and binding contract prepared by VolkLaw can help you make sure you understand the deal completely including what goes happens if some goes wrong. When people consider doing business, they are usually on good terms, assume all parties understand the deal, and that there is no need to say what the consequences are if someone violates the contract. The basic elements of a contract are mutual consideration which means something of value, capacity to contract which means the law recognizes you as capable of entering in to a legally binding agreement, assent which means you agree to the contract terms, and legality meaning it does not deal with an illegal activity such as gambling.
A contract is a set of promises made by two or more parties to each other.
