Elements Of Construction Contracts: Consideration
There are many elements that are necessary for a successful construction contract. In this article we will discuss the element of consideration, and what it brings to a construction contract. When drafting your contract, it’s always recommended that you seek the assistance of your Orlando construction attorney to avoid any confusion or errors and we will have the experience to know what to look for in an ideal consideration element.
What Goes Into the Element of Consideration?
As Orlando construction attorneys, we know that consideration is an essential part of construction contracts. Consideration is the benefit that each party involved in the contract receives or expects to receive from the agreement. When you add a consideration element to your construction contract, you and the other party (parties) involved are promising to do something that you’re not legally obligated to do, or promising not to do something you have the right to do, such as filing a lawsuit. This needs to be agreed upon in order for consideration to provide a legitimate basis for the contract. This promise is also known as “bargained-for-detriment” and means that the two parties involved must exchange one thing of value for another.
Can You Omit Consideration From the Contract?
You can leave consideration out of your contract, but there are high chances it will hurt you in the long run. Absent consideration in a contract means that one of the parties involved in the agreement is not obligated, while the other party is obligated. So if your dispute ends up in litigation, and the court finds your contract unenforceable, it can be due to the lack of consideration.
Usually, the courts will not interfere with parties dealing with consideration issues. However, there have been a few cases that can cause a judge to declare a contract unenforceable:
- If the consideration is treated more like a gift
- If one of the parties is already legally bound to perform
- If consideration element is based on a promise that is illusional
- If the consideration element is made as a result of a past event
To schedule a consultation with one of our experienced Orlando construction lawyers, please call us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.