HopefullyInLawSchool
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Simple English definitions for legal terms
for value received
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A quick definition of for value received:
Term: For value received
Definition: When people make a promise or sign a contract, they need to exchange something of value. "For value received" is a phrase that means they have exchanged something, but it doesn't say what that something is. This phrase is often used in important legal documents like bills of exchange, deeds, and promissory notes to make sure everyone knows that something valuable was exchanged and the contract is legally binding.
A more thorough explanation:
Definition: "For value received" is a phrase commonly used in legal documents such as bills of exchange, deeds, promissory notes, or contracts to indicate that an exchange of unspecified consideration has taken place. This phrase is used to reinforce the documentation of the exchange of consideration, which is a critical component of any legally binding contract.
- A promissory note might include the phrase "For value received, I promise to pay John Doe $10,000 within 90 days."
- A deed might include the phrase "For value received, I hereby convey to Jane Smith all of my rights and interests in the property located at 123 Main Street."
These examples illustrate how the phrase "For value received" is used to indicate that an exchange of consideration has taken place. In the first example, the consideration is $10,000, which the borrower promises to pay back within 90 days. In the second example, the consideration is the conveyance of all rights and interests in the property.