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Simple English definitions for legal terms
total failure of consideration
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A quick definition of total failure of consideration:
Total Failure of Consideration: When someone promises to do something in a contract, but they don't do it, it's called a failure of consideration. This means that the contract is not worth anything because one person didn't keep their promise. It's like if you promised to give your friend a toy if they gave you a candy bar, but then you didn't give them the toy. The candy bar wouldn't be worth anything because you didn't keep your promise. Sometimes, if the failure is really bad, the whole contract becomes worthless. This is called a total failure of consideration.
A more thorough explanation:
Definition: Total failure of consideration refers to a situation where a contract's basis or inducement becomes worthless due to a seriously deficient contractual performance. It means that one party has failed to perform their part of the contract, causing the contract to become void.
For example, if a person promises to build a house for another person, and the other person promises to pay for the construction once it is completed, there is consideration on both sides of the contract. However, if the builder fails to complete the construction, it is considered a total failure of consideration, and the contract becomes void.
It is important to note that the term "failure of consideration" is misleading since it relates to the performance of the contract rather than its formation. Therefore, scholars disapprove of this term and prefer to use "failure of performance" instead.
Partial Failure of Consideration: This refers to a situation where a party has only partially performed their contractual obligations. For example, if a person hires a contractor to build a house and the contractor only completes half of the construction, it is considered a partial failure of consideration. In such cases, the appropriate part of the agreement can be apportioned to whatever has been completed.
Examples:
- A person hires a painter to paint their house for $1000. The painter only paints half of the house and then disappears without completing the job. This is a total failure of consideration since the painter did not fulfill their contractual obligations, and the contract becomes void.
- A person hires a landscaper to plant a garden for $500. The landscaper plants half of the garden and then disappears without completing the job. This is a partial failure of consideration since the landscaper only partially fulfilled their contractual obligations, and the appropriate part of the agreement can be apportioned to whatever has been completed.
These examples illustrate how a total or partial failure of consideration can occur when one party fails to perform their contractual obligations, causing the contract to become void or partially void.