Legal Definitions - value received

The phrase "value received" is a legal acknowledgment that something of worth, which was promised as part of an agreement, has already been delivered or provided to the party making a subsequent promise or obligation. It confirms that the exchange of goods, services, or money has taken place, thereby establishing the legal basis for a future action, most commonly a payment. Essentially, it means "I have already received what I was promised, and now I am obligated to fulfill my part of the agreement."

Here are some examples illustrating "value received":

• Business Loan: A small business owner secures a loan of $50,000 from a private investor to expand their operations. The investor transfers the full $50,000 into the business's bank account. In return, the business owner signs a promissory note agreeing to repay the loan with interest over five years. This promissory note explicitly states, "For value received, I promise to pay..."

  How it illustrates the term: The phrase "value received" confirms that the business owner has already received the $50,000 (the "value") from the investor. This prior delivery of funds makes the business owner's promise to repay the loan a legally binding obligation, as the consideration for that promise has already been provided.

• Consulting Services: A marketing consultant completes a comprehensive digital strategy project for a client, delivering all reports, analyses, and recommendations as per their contract. After the client reviews and accepts the deliverables, the consultant issues an invoice for the agreed-upon fee. The invoice or a separate acknowledgment document might include the notation "Value received for services rendered."

  How it illustrates the term: Here, "value received" signifies that the client has already benefited from and accepted the completed marketing strategy (the "value"). This acknowledgment confirms that the consultant has fulfilled their part of the agreement, thereby solidifying the client's obligation to pay the invoice, as the consideration (the completed services) has been delivered.

• Sale of Goods: A customer orders a custom-built shed from a local carpenter. The carpenter constructs the shed off-site and then delivers and installs it in the customer's backyard. Once the installation is complete and the customer inspects and approves the shed, they sign a final payment agreement. This agreement might contain language like, "Acknowledging value received, the undersigned agrees to pay the remaining balance of..."

  How it illustrates the term: In this scenario, "value received" confirms that the customer has physically received and accepted the custom-built shed (the "value") and that it meets their specifications. This acknowledgment establishes the customer's obligation to make the final payment, as the promised goods have been delivered and approved.