Legal Definitions - legal benefit

A legal benefit refers to something of value or an advantage that a party receives, or is promised to receive, as part of a legal agreement, contract, or transaction. This benefit serves as a form of "consideration" in contract law, meaning it is something given or received to make a promise legally binding. It can be tangible, like money or property, or intangible, such as a right, privilege, service, or the avoidance of a loss.

• Example 1: Contract for Services
  A small business contracts with a web design agency to create a new e-commerce website. The agency completes the project according to the agreed specifications.

  How this illustrates "legal benefit": The small business receives the legal benefit of a fully functional e-commerce website, which is a valuable asset intended to generate revenue and expand its market reach. This benefit is the consideration the business receives in exchange for its payment to the web design agency.

• Example 2: Settlement Agreement
  After a minor car accident, two drivers agree to a private settlement where one driver pays the other a sum of money to cover repair costs, and in return, the recipient agrees not to pursue further legal action.

  How this illustrates "legal benefit": The driver receiving the payment obtains the legal benefit of having their repair costs covered without the need for insurance claims or a lengthy court process. The other driver also receives a legal benefit: the assurance that no further legal action will be taken, providing certainty and avoiding potential future litigation expenses.

• Example 3: Real Estate Transaction
  A local government purchases a tract of undeveloped land from a private owner to convert it into a public park for its residents.

  How this illustrates "legal benefit": The local government receives the legal benefit of ownership and control over the land, allowing it to develop a public amenity. This acquisition provides the city with a valuable asset that serves the community, which is the consideration it receives in exchange for the purchase price paid to the private owner.