consideration. n. 1) payment or money . 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract.
What does consideration amount mean?
Consideration Amount means, with respect to any Market Sale, an amount equal to the cash proceeds actually received by the Financing Provider with respect to such Market Sale.
What is an example of consideration in a contract?
Anything of value promised by one party to the other when making a contract can be treated as “consideration”: for example, if A signs a contract to buy a car from B for $5,000, A’s consideration is the $5,000, and B’s consideration is the car.
What is consideration price?
The term “consideration” is a concept in English law that refers to the price paid in exchange for the fulfillment of a promise . ... In simple terms, anything of value that is promised by one party to another can be viewed as a consideration. In finance, this term is commonly used in mergers & acquisitions (M&A)
What was the consideration in this transaction?
Transaction Consideration means an amount equal to the total funds required to consummate the Offer as contemplated by the Undertaking Agreement and the Tender Documents. Transaction Consideration means an amount equal to the total funds required to consummate the Acquisition as set forth in the Acquisition Agreement.
What are examples of consideration?
The definition of consideration is careful thought or attention or compassionate regard for someone or something. An example of consideration is someone deciding between two options for dinner . An example of consideration is someone bringing a friend dinner who just had a baby.
What is consideration explain?
‘Consideration’ means “something in return” , i.e. ... Consideration is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.” An agreement without consideration is a bare promise and exnudo pacto non aritio actio, i.e., cannot be held to binding on the parties.
What are the 4 types of consideration?
- Executory Consideration or Future Consideration,
- Executed Consideration or Present Consideration, or.
- Past Consideration.
What are the six types of consideration?
- 1.An offer made by the offerer.
- 2.An acceptance of the offer by the offeree.
- Consideration in the form of money or a promise to do or not do something.
- Mutuality between parties to carry out the promises of the contract.
- Capacity of both parties in mind and age.
- Legality of terms and conditions.
What are the 3 requirements of consideration?
Each party must make a promise, perform an act, or forbear (refrain from doing something) .
What is good consideration?
A reason for doing something based on natural affection, generosity, love, or moral duty . This reason is insufficient to judge a commercial contract or promise enforceable as it lacks valid, valuable, and legal basis for the reason. Also refer to valuable consideration.
What are included in consideration?
Enforcing any legal contract requires it to have an element of consideration included in it. In simple words, it is nothing but a price that the promisee agrees to pay to the promisor . Now, this price can be paid as a benefit to the promisor and/or a loss or detriment to the promisee.
How is total consideration calculated?
Total Consideration means the total amount (but without duplication) of (a) cash paid in connection with any Acquisition, plus (b) Indebtedness for borrowed money payable to the seller in connection with such Acquisition, plus (c) the fair market value of any equity securities, including any warrants or options ...
What does receive consideration mean?
Consideration Received means the amount of cash and the Fair Market Value , as of the Consummation Date, of consideration other than cash received by the stockholder.
What is transaction and examples?
A transaction is a business event that has a monetary impact on an entity’s financial statements, and is recorded as an entry in its accounting records. Examples of transactions are as follows: Paying a supplier for services rendered or goods delivered . ... Paying an employee for hours worked.
What are transaction types?
There are four main types of financial transactions that occur in a business. These four types of financial transactions are sales, purchases, receipts, and payments . ... Sales transactions are recorded in the accounting journal for the seller as a debit to cash or accounts receivable and a credit to the sales account.
