Restatement (Second) of Contracts · Section § 79
An overview of the consideration requirement for enforceable contracts under the Restatement (Second) of Contracts.
Source: Restatement Restatement (Second) of Contracts § § 79
If the requirement of consideration is met, there is no need for a party to have received a benefit of equal value; even a slight amount of consideration can suffice.
Section 79 emphasizes that consideration can be minimal for a contract to be enforceable. It establishes that even a small benefit or detriment is enough to support a legal agreement.
Consideration does not need to be adequate; it only needs to be legally sufficient.
The mere presence of consideration, regardless of its value, generally suffices to form a contract.
Illustration 1
A party agrees to give $1 in exchange for a complex service, and this agreement is enforceable due to the presence of consideration.
Illustration 2
An agreement where one party promises a gift but receives a nominal consideration may still be considered a legally binding contract.
Illustrated that forbearance to act can constitute adequate consideration, reinforcing that even a minor detriment qualifies under § 79.
Understanding § 79 is crucial for contract law practitioners as it delineates the boundaries of what constitutes valid consideration. This flexibility allows parties to enter binding agreements without being overly concerned about the fairness of the exchange.