Also known as: informal considerations · consideration
Written by attorneys · grounded in primary & secondary sources — see below
A principle under which specified agreements or legal relations become enforceable or effective even though they lack the bargained-for exchange that contract law ordinarily demands. The principle applies when a statute or doctrine expressly dispenses with the consideration requirement, as with marital property agreements signed by both spouses or the creation of an agency relationship.
Ian Iverson and Ivy Investments' principals sign a marital property agreement allocating future earnings. The signed document is enforceable even though neither spouse provided traditional consideration for the allocation. The statute dispenses with the usual bargained-for exchange requirement.
Spouses execute a written agreement waiving spousal election rights before marriage. The waiver becomes enforceable without any bargained-for exchange because the governing statute expressly dispenses with consideration.
A couple signs a premarital agreement dividing assets acquired during marriage. The agreement is enforceable despite the absence of traditional consideration because the statute removes the bargained-for exchange requirement.
Select any source to read its text and confirm it supports the definition.
Israel Irving agrees without payment to act as agent for Iain Irons in securing warehouse property. The agency relationship forms and creates duties even though no consideration passed between the parties.
An editor requests that a freelancer perform tasks solely for exposure. The agency relationship arises upon manifestation and consent although neither party receives consideration.
Ian Iverson and Ivy Investments' principals sign a marital property agreement allocating future earnings. The signed document is enforceable even though neither spouse provided traditional consideration for the allocation.
Marital property agreements, premarital agreements, and waivers of spousal election rights become enforceable once signed by the required parties even though no bargained-for exchange occurs. Agency relationships likewise arise without consideration.
No. The relation of principal and agent can be created although neither party receives consideration. An editor's request that a freelancer perform tasks for exposure rather than pay still creates agency when both manifestation and consent are present.
Yes. The relation of principal and agent forms upon manifestation of consent even though neither party receives consideration, as when an editor requests work solely for exposure.
…Commission on Accreditation of Hospitals." The providing of medical information by physicians to state legislatures in their consideration of legislation regarding therapeutic abortion was "to be considered consistent with the principles of ethics of the American Medical Association." This recommendation was adopted by the…