Re: Consideration… - Posted by JohnBoy
Posted by JohnBoy on January 19, 2001 at 09:30:29:
Taking over and making the payments is something of value. Also, bringing any back payments current would be something of value. A mutual agreement between buyer and seller is something of value where the consideration on the buyers behalf is to perform on something within the contract. Agreeing to take over someone’s mortgage payments subject to would be a form of consideration.
John Beck addresses this issue in an article he wrote pertaining to earnest deposits.
Here’s a part he addresses about consideration:
However, is a “deposit” necessary to create a binding real estate purchase/sell contract?
The California definition of “consideration” using the language of “any benefit conferred, or agreed to be conferred” and “or any prejudice suffered, or agreed to be suffered.” Basically, whenever a buyer makes an offer to purchase real property at a certain price and in accordance with certain terms and conditions, upon acceptance, that buyer is providing to the seller a “benefit … agreed to be conferred” by the buyer upon the seller.
The “benefit” is the commitment of the buyer to purchase the seller’s property at the agreed upon price, terms and conditions.
Additionally, whenever a buyer makes an offer to purchase real property at a certain price and in accordance with certain terms and conditions, upon acceptance, that buyer has agreed to “suffer” a “prejudice.”
The “prejudice” is the obligation to purchase the seller’s property at the agreed upon price, terms and conditions.
You can find the article at this link: