failure of consideration
In contracts, a party trades something of value in exchange for consideration. The term failure of consideration implies that the consideration, which was sufficient at the time of bargaining, has ceased to be sufficient. The could happen if the consideration offered becomes worthless, or if the party promising to furnish the consideration fails to do so.
Definition from Nolo’s Plain-English Law Dictionary
The refusal or inability of a contracting party to perform its side of a bargain.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:16 pm
