Legal Definitions - and other good and valuable consideration

The phrase "and other good and valuable consideration" is a common legal term found in contracts and agreements. It refers to anything of legal value that is exchanged between parties in an agreement, beyond what might be explicitly detailed elsewhere in the document. In contract law, "consideration" is a fundamental requirement for a contract to be legally binding. It means that each party must give up something of value, or promise to do so, in exchange for something from the other party.

This phrase acts as a catch-all, ensuring that all forms of legally recognized value exchanged, whether tangible (like money or property) or intangible (like a promise to act or refrain from acting), are acknowledged. It reinforces that the agreement is supported by a mutual exchange of value, making the contract enforceable in the eyes of the law.

• Example 1: Real Estate Purchase Agreement

  Imagine a contract for the sale of a house. The primary consideration is the buyer's payment of the purchase price in exchange for the seller's transfer of property ownership. However, the contract might also include the phrase "and other good and valuable consideration." This could cover additional agreements, such as the seller promising to leave behind a custom-built shed or specific high-end appliances that weren't initially listed as fixtures, in exchange for the buyer agreeing to a slightly faster closing date. The shed and appliances, while not part of the core monetary exchange, represent additional value exchanged between the parties.

  How it illustrates the term: The purchase price is the explicit consideration. The phrase "and other good and valuable consideration" legally acknowledges the value of the shed, appliances, and the expedited closing date as additional elements that support the overall agreement, making it fully binding.

• Example 2: Business Partnership Agreement

  Consider two individuals forming a new business. One partner contributes a significant amount of startup capital, while the other contributes a unique software algorithm they developed. The partnership agreement might state these contributions and then include "and other good and valuable consideration." This could encompass the first partner's promise to dedicate full-time effort to managing operations for the first two years, foregoing other job opportunities, in exchange for the second partner's agreement to provide ongoing technical support and training to new employees for the same period.

  How it illustrates the term: The capital and the software algorithm are clear, explicit considerations. The phrase ensures that the commitment of time, expertise, and ongoing support, which are valuable but not easily quantifiable in monetary terms, are also recognized as part of the binding agreement, reinforcing its legal validity.

• Example 3: Settlement of a Legal Dispute

  Suppose two parties are involved in a dispute, and they reach an out-of-court settlement. The settlement agreement might state that one party will pay a specific sum of money to the other. It will then often include "and other good and valuable consideration." This could refer to the party receiving the money agreeing to drop all current and future legal claims related to the dispute, and also agreeing to sign a non-disparagement clause, promising not to speak negatively about the other party publicly.

  How it illustrates the term: The monetary payment is the primary, explicit consideration. The phrase "and other good and valuable consideration" covers the value of the promise to cease legal action and the agreement to refrain from negative comments, both of which hold significant value to the other party by providing peace of mind and protecting their reputation. These additional promises are crucial to the overall settlement and its enforceability.