How to explain the consideration in contract law in simple terms?

Consideration. It is a unique concept derived from the English common law contract law system. It is one of the three essential elements necessary for a simple contract. A contract without consideration is considered null and void.

The consideration must exist and must be sufficient, but the consideration may not be sufficient. At the same time, in the judicial process of judges, they should be vigilant against the abuse of consideration and pay attention to balancing the two values of party autonomy and the principle of fairness in contract. Valid consideration may include the transfer of rights, interests, material or moral benefits from one party to one party, or certain patience, damages, losses or liabilities given, suffered or assumed by the other party.

Consideration is something that must exist, it must be sufficient but it can not be sufficient. <

When the ** of the consideration slowly decreases, the so-called "consideration is enough" here is what both parties are selling, which must be valuable. In the eyes of the law, what has no value is not considered, but as long as it is valuable in the eyes of the law, no matter how small the value is, it is enough to consider. When this value is as small as 0, the consideration is no longer even in the form of matter, but is immaterial.

Specifically, the contract here may not be the same as what we put on the scales, but these are all legally valuable things, so it doesn't matter. Legally, the scales are flat and the consideration is established. And it's enough.

More extremely, the balance can be flat even if the consideration is gradually reduced to 0 in the equivalent currency. <

The concept of consideration cannot be applied to the judiciary.

abuse, otherwise it will violate the ** law of autonomy of will. As long as the consideration is not from the past and is legally valuable, then the judge does not need to consider whether the parties have placed something of geometric value on the scale. As long as there is consideration in the balance, even if it is invisible, the scale is flat.

The most important consideration in the contract is the remuneration of labor, and there will be corresponding protection of the relevant rights and interests of the labor law in the contract, and the corresponding consideration will be obtained in accordance with these laws and regulations.

To put it bluntly, when one party wants to obtain a certain benefit, it must pay the corresponding price to the other party, and if the contract is not performed, then it must be punished according to the provisions of the contract.

Consideration is actually a certain margin. It is a certain deposit paid by both parties to a transaction in exchange for the other party's promise to do something.

Legal Analysis: Contractual consideration refers to the monetary consideration paid by one party to the other party in exchange for the other party's promise to do something, or the consideration for receiving such a promise. When one of the parties obtains a certain benefit, it must pay the corresponding price to the other party.

If one of the parties fails to perform its contractual obligations or the non-compliance with the agreement in performing its contractual obligations causes losses to the other party, the amount of compensation for the losses shall be equivalent to the losses caused by the breach of contract.

Legal basis: Article 585 of the Civil Code of the People's Republic of China The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, and may also agree on the method of calculating the amount of compensation for losses arising from the breach.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; Where the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.

If the parties agree on liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.

It means the monetary price paid by one party to the other party in exchange for the promise of the other party to do something, or the price of receiving such a promise. It means that when one party obtains a certain benefit, it must pay the other party a corresponding price.

Relevant legal provisions.

Article 509 of the Civil Code: The parties shall fully perform their obligations in accordance with the agreement.

The parties shall follow the principle of good faith and perform obligations such as notification, assistance, and confidentiality in accordance with the nature, purpose, and transaction habits of the contract.

In the process of performing the contract, the parties shall avoid wasting resources, polluting the environment and damaging the ecology.

Contractual consideration is the monetary consideration paid by one party to the other party in exchange for an undertaking by the other party to do something, or the consideration for receiving such a promise. When one of the parties obtains a benefit, it must pay the other party a corresponding consideration. If one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, causing losses to the other party, the amount of compensation for the loss or loss shall be equivalent to the losses caused by the breach of contract.

Article 585 of the Civil Code may stipulate that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, and may also agree on the method of calculating the amount of compensation for losses arising from the breach of contract. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed liquidated damages are higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties. If the parties agree on liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.