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LSDefine
Simple English definitions for legal terms
other consideration
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A quick definition of other consideration:
Other consideration is something that is given or promised by one party in exchange for the promise of another party. It can be an act, a forbearance, or a return promise that motivates a person to engage in a legal act. Consideration is necessary for an agreement to be enforceable. It can be fair and reasonable under the circumstances of the agreement, or it can be grossly inadequate. Other types of consideration include concurrent consideration, continuing consideration, executed consideration, executory consideration, express consideration, future consideration, good consideration, nominal consideration, past consideration, sufficient consideration, and valuable consideration. In parliamentary law, consideration is the process by which a deliberative assembly disposes of a motion. In history, consideration also refers to a court's judgment.A more thorough explanation:
Definition: Other consideration refers to additional things of value to be provided under the terms of a contract, usually unspecified in the contract, deed, or bill of sale, because they are too numerous to conveniently list, or to avoid public knowledge of the total amount of consideration.
Example: A company agrees to purchase a piece of land from another company for $1 million. In addition to the $1 million, the purchasing company agrees to provide other consideration, such as shares of stock, future business opportunities, and access to certain resources. These additional items of value are not specifically listed in the contract but are considered part of the overall consideration for the sale.
Explanation: Other consideration is any additional value provided in a contract beyond what is explicitly stated. In the example, the purchasing company is providing more than just the $1 million in cash for the land. The shares of stock, future business opportunities, and access to resources are all part of the consideration for the sale. This type of consideration is often used when there are too many items to list or when parties want to keep the total amount of consideration private.