Written by attorneys · grounded in primary & secondary sources — see below
A legal advantage or gain conferred on a party through a transaction, relationship, or legal rule. The advantage may consist of property, money, services, or the fulfillment of a desire, and it is often paired with a corresponding detriment in the formation of enforceable obligations.
Sources & Authorities
How it applies
Common Examples
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Buyer Bears Risk After Contract
After Brendan Burns signed a binding contract to purchase land from Boulder Construction, a storm destroyed the barn on the parcel. Brendan must still pay the full purchase price because the equitable interest he acquired at contract formation places both the benefits and the burdens of ownership on him during the executory period.
Discovery Request Weighed for Benefit
Barbara Bennett sought production of thousands of internal emails in a contract dispute against Bay Area Systems. The court limited the request after finding that the burden and expense of review far outweighed any likely benefit to resolving the modest damages claim at issue.
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Benjamin Brooks left Brighton Manufacturing and joined a competitor. The partnership agreement's noncompete clause was unenforceable except to the extent it provided for retirement benefits that Benjamin would receive upon reaching a specified age.
Third Party Receives Performance Benefit
Bella Barnes contracted with Boreal Energy to install solar panels on her neighbor Bobby Brady's roof at no cost to Bobby. Bobby qualifies as a beneficiary because the circumstances show that Bella intended him to receive the benefit of the promised installation.
Landlord Maintains Common Areas
Brianna Burke leased an apartment from Boulder Construction. When the shared laundry room fell into disrepair, Boulder was obligated to restore it because the facility was maintained for the use and benefit of all tenants in the building.
Entry to Prevent Harm Privileged
Bobby Brady entered Benjamin Brooks's vacant lot to extinguish a spreading brush fire that threatened his own adjacent property. The entry was privileged because it was necessary to prevent serious harm to Bobby's land even though Benjamin had not consented.
Common questions
Frequently Asked
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How does receipt of a benefit relate to the requirement of consideration in contract formation?+
Each party must receive a legal benefit in exchange for a legal detriment. The benefit need not be economic. It is enough that the promisor receives the fulfillment of a stated desire, as when a nephew refrains from certain conduct at an uncle's request.
Does an interested witness lose a gift under a will simply because the witness receives a benefit from the instrument?+
No. Modern statutes provide that the fact a witness is interested does not invalidate the will or any provision in it. A competent beneficiary may serve as an attesting witness without forfeiting the devise.
When does a third party qualify as a beneficiary entitled to enforce a contract?+
A person other than the promisee is a beneficiary when performance will benefit that person and the circumstances indicate that the promisee intends to give the beneficiary the benefit of the promised performance.
5 U.S. (1 Cranch) 137 (1803)Property
…the patent is recorded and clerks can be called to prove that fact. Similarly, if a private act of Congress had passed for one's benefit and a copy was needed in court, the clerks could prove the act is among the rolls. The court ordered the witnesses to be sworn and their answers to be taken in writing, informing them they…