Consideration passing from both sides is an essential element in creating a legally binding agreement. Consideration is the exchange of something of value between the parties to the agreement. Here are some key aspects of consideration passing from both sides:
Mutual exchange: Consideration must be exchanged by both parties to the agreement. This means that each party must receive something of value from the other party in exchange for what they are giving up.
Adequacy of consideration: The consideration exchanged by the parties does not have to be of equal value, but it must be sufficient. The court will not usually inquire into the adequacy of consideration, as long as it is not so inadequate that it raises issues of fraud, duress, or undue influence.
Legal consideration: Consideration must be something that is legally recognized as valuable. For example, money, goods, services, and promises to do something or refrain from doing something are all forms of consideration that are legally recognized.
Benefit and detriment: Consideration must involve a benefit to one party and a detriment to the other party. This means that each party must gain something of value, and each party must also give up something of value.
Past consideration: Consideration must be given in exchange for a promise or performance that is to occur in the future. Past consideration, or consideration given for something that has already occurred, is not legally recognized.
Overall, consideration passing from both sides is an essential element in creating a legally binding agreement. The consideration exchanged must be of sufficient value, legally recognized, involve a benefit and detriment to each party, and be given in exchange for a promise or performance that is to occur in the future.