Legal Definitions - Valuable consideration

Definition: Valuable consideration refers to a fair price paid by one party in exchange for something in a contract or sale. It can be monetary or non-monetary, but it must be sufficient to make the contract legally binding.

For example, if you buy a car from a dealership, the money you pay is the valuable consideration. In return, you receive the car. If you agree to clean the dealership's windows in exchange for the car, that would not be considered valuable consideration because it is not a fair exchange.

Valuable consideration is important in contracts because it distinguishes them from gifts. A contract must involve consideration from both parties to be legally binding. Consideration can come in many forms, but it must be sufficient to make the contract enforceable.

Valuable consideration can also be important in cases of fraud. If someone is paid much more than what they sold, it may be evidence of fraudulent activity.