Benefit Detriment Rule

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Benefit Detriment Rule

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Anonymous 0 Comments

In order for a contract to be enforceable, both parties must be given some sort of consideration. I get money, you get your lawn mowed every week, a contract that required me to mow your lawn just because would not be valid.

Benefit-detriment theory is one way to look at consideration. In exchange for the thing I do for you, I must be objectively gaining something and you must be losing something. The alternative, the approach US courts are moving towards, is *bargain theory*. The idea is that if both parties agree to some subjective benefit, the contract is valid.

Neither approach is right or wrong, and both can be applied to a given situation.