What is Good Consideration? A Comprehensive Legal Overview

Q: Is good consideration legally binding?

Not always. It may not hold up in court without valuable consideration.

Q: Can good consideration apply to gifts?

Yes, gifts given out of affection often rely on good consideration.

Definition & Meaning

Good consideration refers to a type of consideration in legal agreements that is based on moral obligation, affection, or natural duty rather than monetary value. It is often recognized in situations involving familial or close relationships, where actions are motivated by love, affection, or a sense of duty. This concept stands in contrast to valuable consideration, which typically involves a tangible benefit exchanged between parties.

Table of content

Legal Use & context

Good consideration is primarily used in contract law and family law. It can come into play in cases involving gifts, promises, or agreements where the parties share a personal connection. For instance, a parent may promise to give their child a sum of money as a gift, relying on good consideration rather than a formal exchange of value. Users can manage related legal documents using templates available through US Legal Forms.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A grandmother promises to give her grandson a car as a gift. This promise is based on affection and does not involve a monetary exchange (hypothetical example).

Example 2: A friend agrees to help another friend move, motivated by their friendship rather than any payment. This assistance is an example of good consideration.

State-by-state differences

Examples of state differences (not exhaustive):

State	Good Consideration Recognition
California	Recognizes good consideration in familial agreements.
New York	Good consideration is acknowledged in informal agreements.
Texas	Good consideration may not be sufficient in enforceable contracts.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Differences
Good Consideration	Based on moral obligation or affection.	Not tied to monetary value.
Valuable Consideration	Involves a tangible benefit exchanged.	Requires a measurable exchange of value.

Common misunderstandings

What to do if this term applies to you

If you believe good consideration applies to your situation, consider documenting any agreements clearly, even if they are informal. You can explore US Legal Forms for templates that can help you create necessary documents. If your situation is complex, it may be beneficial to consult a legal professional for tailored advice.

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Quick facts

Good consideration is based on affection or moral duty.
It is not tied to monetary value.
Primarily relevant in family law and contract law.

Key takeaways

Frequently asked questions

What is good consideration?

Good consideration refers to non-monetary motivations such as affection or moral duty in agreements.