Understanding Positive and Negative Consideration in Contracts
Explore the concepts of positive and negative consideration in contract law, and how they impact agreements.
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Yes, consideration can be positive or negative. In legal contracts, 'consideration' refers to something of value exchanged between parties. A positive consideration involves a promise to do something (e.g., payment for services), while a negative consideration involves a promise to refrain from doing something (e.g., a non-compete agreement). Both forms are valid and enforceable in contract law.
FAQs & Answers
- What is positive consideration? Positive consideration involves a promise to do something, such as making a payment in exchange for services.
- What does negative consideration mean? Negative consideration refers to a promise to refrain from doing something, like agreeing not to work for a competitor.
- How is consideration defined in legal terms? In legal terms, consideration is anything of value exchanged between parties in a contract.
- Are both positive and negative considerations enforceable? Yes, both positive and negative considerations are valid and enforceable in contract law.