Legal Definitions - want of consideration

Want of consideration refers to the absence of a legally recognized exchange of value between parties in an agreement. For a contract to be legally binding, each party must provide something of value to the other, which is known as "consideration." If this essential element is missing, the agreement is generally not enforceable as a contract because there is no mutual obligation or sacrifice that makes the promise legally binding.

Here are some examples illustrating "want of consideration":

• The Unilateral Gift Promise: Imagine a situation where a wealthy aunt promises her niece, "I will give you $10,000 next year for your college tuition." The niece is thrilled but doesn't promise anything in return, nor does she give up anything of value in exchange for her aunt's promise. In this scenario, there is a want of consideration. The aunt's promise is a gratuitous gift promise, not a contract, because the niece has not provided any consideration. Therefore, the aunt could legally change her mind without facing a breach of contract lawsuit.

• The After-the-Fact Reward: Consider a homeowner whose dog runs away. A kind neighbor finds the dog and returns it without knowing there was a reward. Later, out of gratitude, the homeowner promises the neighbor $500 for returning the dog. Here, the neighbor's act of returning the dog was performed before the homeowner's promise of $500. Since the act was not done in exchange for the promise (the neighbor didn't know about a reward), the homeowner's promise lacks new consideration. This is an example of want of consideration, meaning the homeowner's promise to pay the $500 is likely not a legally enforceable contract.

• The Vague Business Agreement: A small business owner tells a supplier, "I might buy some of your new inventory next quarter if I feel like my sales are good enough." The supplier agrees to "hold some stock" for them. The business owner's statement is an "illusory promise" because it doesn't actually obligate them to do anything specific; they haven't committed to buying any quantity or even buying at all. Since the supplier isn't receiving a definite promise of value in return for their agreement to hold stock, there is a want of consideration, and no enforceable contract has been formed between them.