The phrase "money or money's worth" refers to various forms of value that can be quantified in monetary terms. This includes cash, securities, physical and intangible property, services, and any other consideration that can be converted into a money value. It is important to note that certain types of consideration, such as love, affection, or promises of marriage, do not qualify as money or money's worth.
This term is commonly used in legal contexts involving property rights, contracts, and security interests. It plays a crucial role in determining what constitutes valid consideration in agreements, especially in areas such as:
Users can often manage related legal procedures using templates from US Legal Forms, which provide guidance on drafting agreements that involve money or money's worth.
Here are a couple of examples of abatement:
Example 1: A person sells their car for $5,000. The cash received is considered money or money's worth.
Example 2: A couple agrees to exchange services, such as home repairs for babysitting. This agreement involves consideration that can be quantified in monetary terms (hypothetical example).
Examples of state differences (not exhaustive):
| State | Consideration Rules |
|---|---|
| California | Recognizes both tangible and intangible consideration. |
| Texas | Allows past consideration in certain agreements. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Consideration | Something of value exchanged in a contract. | Money or money's worth is a specific type of consideration. |
| Value | The importance or worth of something. | Value can be subjective, while money or money's worth is quantifiable. |
If you are entering into an agreement that involves money or money's worth, ensure that all considerations are clearly defined and quantifiable. You can use templates from US Legal Forms to draft your agreements effectively. If your situation is complex, consider consulting a legal professional for tailored advice.
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It includes cash, securities, and property that can be assigned a monetary value.