Legal Definitions - meritorious consideration

Meritorious consideration refers to a type of legal consideration that is based on a strong moral obligation or natural affection, such as that between close family members. Unlike "valuable consideration," which involves a direct exchange of economic value (like money or services), meritorious consideration acknowledges an underlying moral duty or familial bond as a valid reason for enforcing a promise or a transfer of property, particularly in situations involving gifts, trusts, or family arrangements. Courts may sometimes recognize it as sufficient to support an agreement, especially in equity, even without a typical commercial exchange.

Here are some examples to illustrate this concept:

• Example 1: Parental Gift of Property

  A mother promises to transfer ownership of her family cottage to her adult daughter. The daughter does not pay any money or provide a service in return. The "meritorious consideration" in this scenario is the natural love and affection between the mother and daughter. If the mother takes steps to formalize this transfer, a court might recognize the promise as enforceable due to this strong familial bond, even without a traditional financial exchange.

• Example 2: Promise to Establish a Trust for a Dependent Relative

  An elderly aunt, feeling a strong moral obligation and affection for her struggling niece, promises to establish a trust fund to cover her niece's university education expenses. The niece does not offer anything in return for this promise. The aunt's promise could be supported by meritorious consideration – her moral duty and natural affection for her niece. If the aunt takes steps to create the trust, a court might uphold this promise, recognizing the underlying moral and familial basis for the agreement.

• Example 3: Care for an Elderly Family Member

  A grandfather, in declining health, promises his grandson that if the grandson moves in and provides full-time care for him for the remainder of his life, he will leave the grandson his antique car collection in his will. The grandson fulfills his promise, dedicating years to his grandfather's care. While the care itself is a valuable service, the "meritorious consideration" here also encompasses the familial duty and affection that motivates both the promise and its fulfillment. A court might view the grandson's dedicated care, driven by this familial bond, as sufficient consideration to enforce the grandfather's promise, going beyond a purely commercial valuation of the care provided.