Legal Consideration Myth

fordecan profile photo

OK- one more post for me after visiting my attorney.

I explained to him that most everything I have heard or read requried that on a LO that there be a minimum of $1 or $10 or $100 as consideration in an LO to make it legal.

He laughed at me.

He said that would only be required in a unilateral contract and it is out of date thinking. He said in an LO, you are offering to make the payments in consideration of the owner offering to sell the property at a certain price. Does not matter if you decide not to buy it and return to the original owner... There is still consideration in this case and it is totally uneccessary to do the $1,$10,$100 tap dance.

Take it for what it's worth, and I am sure it varies from state to state.

Good night and drive safely. Gettin' late- gotta catch Conan.

Comments(4)

  • Lufos24th January, 2004

    Dear Conan,

    The Consideration in this case can be other then money.

    Love and Kisses. Promise not to laugh or hold another up to redicule. Desist from unwelcome attentions onto self or other. Desist from an undesirable action. Don't kick the dog, cat? wife? or designated person.

    It goes on and on. Contracts are really a kick.

    Enjoy, Lucius

  • myfrogger24th January, 2004

    Yeah I don't know the exact history of how this started but if I remember right it was an old supreme court decision. It stated something to the effect that for a contract to be valid and enforcible, there must be good intentions or something.

    Maybe someone can elaborate on my thinking. Every deed I have seen says in valuable consideration of $10 or such.

  • telemon24th January, 2004

    Frogger,

    I think you are speaking to quit claim deeds? I have seen them (Used them) without any monetary amount. Mine just says for valuable consideration, with no amount given.

    [addsig]

  • InActive_Account24th January, 2004

    It maybe different in different places.

    In Alabama, I have bought and when recorded, it states in consideration of $10. Why? I don't have the foggiest idea.

Add Comment

Login To Comment