Find Legal Information

9-05 Consideration

Download pdf

CHAPTER 9-05CONSIDERATION9-05-01. Good consideration defined. Any benefit conferred or agreed to be conferredupon the promisor by any other person to which the promisor is not entitled lawfully, or any<br>prejudice suffered or agreed to be suffered by such person, other than such as that person, at the<br>time of consent, is lawfully bound to suffer as an inducement to the promisor, is a good<br>consideration for a promise.9-05-02.When legal or moral obligation good consideration.An existing legalobligation resting upon the promisor, or a moral obligation originating in some benefit conferred<br>upon the promisor or prejudice suffered by the promisee, also is a good consideration for a<br>promise to an extent corresponding with the extent of the obligation, but no further or otherwise.9-05-03.Lawful consideration required.The consideration of a contract must belawful within the meaning of section 9-08-01.9-05-04.Contract void when consideration unlawful.If any part of a singleconsideration for one or more objects, or of several considerations for a single object, is unlawful,<br>the entire contract is void.9-05-05. Consideration executed or executory. A consideration may be executed orexecutory in whole or in part. Insofar as it is executory, it is subject to the provisions of chapter<br>9-04 relating to the object of a contract.9-05-06. Executory consideration - Method of ascertaining. When a consideration isexecutory, it is not indispensable that the contract should specify its amount or the means of<br>ascertaining it. It may be left to the decision of a third person or regulated by any specified<br>standard.9-05-07. Consideration undetermined - Method of ascertaining. When a contractdoes not determine the amount of the consideration nor the method by which it is to be<br>ascertained, or when it leaves the amount thereof to the discretion of an interested party, the<br>consideration must be so much money as the object of the contract reasonably is worth.9-05-08. Consideration not ascertainable - Contract void. When a contract providesan exclusive method by which its consideration is to be ascertained, and such method is on its<br>face impossible of execution, the entire contract is void.9-05-09.Method of determining consideration becomes impossible - Provisionvoid.When a contract provides an exclusive method by which its consideration is to beascertained, and such method appears possible on its face, but in fact is or becomes impossible<br>of execution, such provision only is void.9-05-10. Written instrument - Presumption of consideration. A written instrument ispresumptive evidence of a consideration.9-05-11. Burden of proving want of consideration. The burden of showing a want ofconsideration sufficient to support an instrument lies with the party seeking to invalidate or avoid<br>it.Page No. 1Document Outlinechapter 9-05 consideration