/and UTH-er good and VAL-yoo-uh-bul kun-SID-er-AY-shun/·phrase
Also known as:other good and valuable consideration · good and valuable consideration · valuable consideration · good consideration
Written by attorneys · grounded in primary & secondary sources — see below
A contractual recital indicating receipt of additional consideration beyond any amount or thing expressly stated in the instrument. The phrase supplies the bargained-for exchange needed to render an agreement enforceable.
Sources & Authorities
How it applies
Common Examples
6
Settlement Offer in Malpractice Dispute
Maria accused her former law firm of mishandling her case and threatened suit. The managing partner replied with an email offering a full refund plus payment of new counsel fees in exchange for a release. The email closed with the phrase and other good and valuable consideration. When Maria later sought to introduce the email at trial to prove malpractice, the court excluded it because the offer of valuable consideration occurred during compromise negotiations.
Subsequent Purchaser Under Recording Act
Allied conveyed an office building to Stephen by unrecorded deed in settlement of a zoning suit. Months later State A bought the same building from Allied for cash and recorded first. Because State A paid valuable consideration without notice of Stephen's prior interest, the court held State A prevailed as a bona fide purchaser under the recording statute.
Select any source to read its text and confirm it supports the definition.
Cases
Federal Rules
Restatements
Dictionaries
Uncle's Promise to Nephew
William Story promised his nephew five thousand dollars if the nephew refrained from drinking, smoking, and gambling until age twenty-one. The nephew performed and sued when the estate refused payment. The court enforced the promise because the nephew's forbearance supplied the required consideration.
Hamer v. Sidway124 N.Y. 538
Holder of Bill of Exchange
A Maine citizen acquired a bill of exchange in good faith before maturity in payment of a pre-existing debt. When sued in New York, the acceptor raised defenses based on fraud in the underlying land sale. The Supreme Court held that a bona fide holder who gave valuable consideration takes free of those defenses.
Swift v. Tyson41 U.S. 1 (1842)
Sugar Refining Monopoly Challenge
The United States sued to dissolve a combination that controlled nearly all domestic sugar refining. The Court dismissed the case, holding that manufacturing alone did not constitute interstate commerce even though the refiners received valuable consideration for their stock transfers.
United States v. E. C. Knight Co.156 U.S. 1 (1895)
Termination of Employment Contract
Interactive Data fired Foley after he reported suspected illegal conduct by a colleague. Foley sued for breach of an implied contract not to terminate without cause. The California Supreme Court held that continued employment alone does not constitute valuable consideration sufficient to support an implied promise of job security.
Foley v. Interactive Data Corp.47 Cal. 3d 654, 254 Cal. Rptr. 211, 765 P.2d 373
Common questions
Frequently Asked
4
What does the phrase and other good and valuable consideration accomplish in a contract or deed?+
The phrase recites that the party has received additional consideration beyond any amount expressly stated. It supplies the bargained-for exchange required for enforceability under contract law.
Supporting sources
Why is evidence of an offer containing and other good and valuable consideration excluded under Rule 408?+
Rule 408 bars evidence of furnishing or offering valuable consideration during compromise negotiations when offered to prove liability or amount. The policy encourages candid settlement talks without fear that offers will later be treated as admissions.
Supporting sources
Does a subsequent purchaser who paid valuable consideration prevail under a notice recording act?+
Yes, provided the purchaser took in good faith, gave valuable consideration, and lacked actual or inquiry notice of the prior unrecorded interest. A purchaser with inquiry notice is not a bona fide purchaser and loses priority.
Supporting sources
Is continued employment alone sufficient consideration for an implied promise not to terminate without cause?+
No. Courts hold that the employee's continued work does not constitute the separate valuable consideration needed to support an implied contract term limiting termination.
41 U.S. 1 (1842)Conflict of Laws
…sale. The bill accepted had been received bona fide and before it was due. A bona fide holder of a negotiable instrument for a valuable consideration, without any notice of facts which implicate its validity as between the antecedent parties, who takes it under an indorsement made before it becomes due, holds title unaffected by those…