18:51
medicine is a scam
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
consideration, failure of
Read a random definition: stock attribution
A quick definition of consideration, failure of:
Failure of consideration refers to a situation where a party fails to perform their contractual obligations, causing the basis or reason for the contract to become worthless. This term is often considered misleading as it relates to the performance of a contract rather than its formation. For example, if someone promises to build a structure for another person in exchange for payment, but fails to complete the work, this is considered a failure of consideration. There are two types of failure of consideration: partial and total. Partial failure occurs when a party only partially performs their obligations, while total failure occurs when there is a complete lack of consideration, which voids the contract entirely.
A more thorough explanation:
Definition: Failure of consideration refers to a seriously deficient contractual performance that causes a contract's basis or inducement to cease to exist or to become worthless. It is a situation where one party fails to perform their obligations under the contract, which makes the contract's purpose meaningless.
For example, if a contractor promises to build a house for a homeowner, and the homeowner promises to pay for the work when it is completed, there is consideration on both sides of the contract. However, if the contractor fails to build the house, it is considered a failure of consideration because the homeowner's promise to pay for the work is no longer valid.
It is important to note that failure of consideration is different from want of consideration, which refers to a situation where there was no consideration exchanged at the time of the contract's formation.
There are two types of failure of consideration:
- Partial failure of consideration: This occurs when a party only partially performs their obligations under the contract. In this case, the appropriate part of the agreement can be apportioned to whatever has been completed.
- Total failure of consideration: This occurs when the contract is indivisible, and a complete lack of consideration voids the entire contract.
Overall, failure of consideration is a serious breach of contract that can lead to legal consequences for the party that fails to perform their obligations.