What is it?
Valuable functions as a core element of consideration under contract law. It governs whether a promise or act has enough legal weight to make an agreement enforceable in court.
valuable
UCC / CommercialLegal glossary term
Quick answer
What does valuable mean?
Valuable usually means having recognized worth, whether monetary or practical utility. In contracts, it matters because parties must provide something of value to create an enforceable exchange. Before signing, check that what you are giving is clearly defined as valuable consideration.
Definitions
What is valuable?
Legal Definition
Valuable describes something possessing recognized worth, often in monetary terms or utility within a legal context. When a contract requires something to be valuable consideration, it creates an obligation for both parties to provide that benefit or promise. Courts frequently scrutinize this concept when determining if a bargained-for exchange is legally sufficient.
Plain-English Translation
A permission slip is valuable because you need it to go to the park; without it, you can't leave the house.
Term context
How valuable shows up in legal documents
Why does it matter?
If something lacks legal value, the resulting promise is often unenforceable, leading to the promisor bearing the risk of having to honor the commitment. The party relying on the promise bears that primary liability.
When does it matter?
Valuable consideration must exist when a contract is formed; this happens at the point of mutual assent or acceptance by the receiving party. It remains valuable throughout performance until discharge.
Where is it usually seen?
This term appears frequently in standard clauses within purchase agreements, promissory notes, and security instrument filings under UCC Article 9.
Who is affected?
The creditor requires a valuable promise from the debtor to secure payment. The indemnitor must provide something of value (like insurance coverage) to protect the indemnitee.
How does it work?
First, courts assess if the item or act provides benefit to the other side. Then, they determine if that benefit is 'sufficient,' meaning it has real legal significance beyond a trivial exchange. Finally, they confirm it was bargained for, not just gratuitously given.
Contract relevance
Why valuable matters in contracts
If something lacks legal value, the resulting promise is often unenforceable, leading to the promisor bearing the risk of having to honor the commitment. The party relying on the promise bears that primary liability.
Document context
Where valuable appears in documents
| Document type | Section | Why it matters |
|---|---|---|
| Contract Section where it appears Why it matters | Consideration Clause Defines the exchange's core elements Determines if the contract has legal teeth. | It proves a bargained-for exchange exists between the signatories. |
| Settlement Agreement Often in Release language Why it matters | Release Amount/Benefit Specifies what is being given up or received Confirms the value exchanged for dropping a lawsuit. | A low-value release might not cover all potential claims. |
| Sale Agreement Price/Goods description Why it matters | Purchase Price / Goods Description Describes the object of sale Confirms what the buyer is paying for and receiving in return. | If goods are not valuable (e.g., damaged), remedies might be limited under UCC Article 2. |
| Loan Agreement Promissory Note terms Why it matters | Principal Amount / Collateral Value States the amount owed or what secures it Establishes the quantifiable value of the debt. | It dictates the potential loss for the lender if default occurs. |
Contract language
Common contract wording
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| In consideration of this Agreement... | Because of what is being given in this deal... | What specific action or promise follows the phrase? |
| The parties agree to exchange valuable consideration. | Both sides are giving up something worthwhile. | Is the value quantifiable, even if subjective? |
| Valuable service rendered... | The work performed was worth more than nothing. | Does 'service' have a defined scope or measurable outcome attached to it? |
Red flags
Red flags to watch for
Valuable consideration (without further definition)
It opens the door for arguments over what constitutes 'enough' value.
What to check: Can you assign a dollar amount or tangible benefit to this value?
Good faith and valuable consideration
While common, 'good faith' is subjective; ensure the *value* itself isn't nominal.
What to check: Is there any objective evidence supporting the value beyond just good intentions?
Subject to further negotiation of valuable terms
This suggests the current agreement is incomplete and vulnerable.
What to check: What specific items are subject to this future valuation?
A nominal fee of valuable consideration
If the value is too low, a court might find it insufficient to support an obligation.
What to check: Is the nominal amount zero, or is there some actual benefit attached?
Wording examples
Clearer wording examples
Vague wording
Valuable consideration
Clearer wording
Consideration equal to $5,000.00 payable upon delivery.
Vague wording
Valuable service
Clearer wording
Service consisting of 160 hours of certified consulting work.
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
What to check before signing
1
Is the specific item being exchanged identified?
2
Can you put a dollar value on what you are giving up or receiving?
3
Does this value match what you expect to receive in return?
4
Are there any conditions that might *reduce* the perceived value?
5
If one party defaults, is the value still considered sufficient under UCC Article 2?
6
Have both parties agreed on the subjective nature of the 'value'?
Party impact
How valuable affects each party
| Party | What this party should check |
|---|---|
| The Promisor (Giver) | Ensure what you are giving is objectively valuable enough to bind you. |
| The Promisee (Receiver) | Verify that the value being given up by the other side matches or exceeds your expectations. |
| Buyer | Confirm the goods purchased are not merely 'valuable' but meet quality standards (merchantability). |
Comparison
valuable vs similar terms
| Related term | Plain meaning | Main difference from valuable |
|---|---|---|
| Nominal Consideration | Very small or token value, often close to zero. | While nominal consideration is technically valuable, it can be argued as legally insufficient if the exchange lacks substance. |
| Adequate Consideration | The value exchanged matches what is reasonably expected in a fair deal. | Value must exist (valuable), but adequacy means it isn't drastically disproportionate to the obligation. |
| Legal Consideration | The value that the law recognizes as binding an agreement. | All legally recognized consideration must be valuable, but some things can be valuable yet fail to meet legal standards. |
Missing or vague
If valuable is missing or vague
If you leave 'valuable' undefined in a contract, disputes flare up quickly. One party might claim they provided adequate value based on their internal accounting, while the other insists that subjective feeling doesn't equate to legal worth. This ambiguity forces judges to look at external evidence—like market prices or prior dealings—to determine if the exchange was truly sufficient for enforcement.
If you use it vaguely in a settlement agreement, opposing counsel can argue the release only covers minor claims, leaving major liability hanging over your head.
Document map
Document section map
| Contract section | What to inspect |
|---|---|
| Consideration Clause | Look for specific language defining *what* is valuable (e.g., money, services, assets). |
| Payment Terms | Verify the stated price reflects a value that aligns with industry standards. |
| Scope of Work (SOW) | Ensure the deliverables are inherently valuable; vague scope risks low perceived value. |
| Indemnification Clause | Check if the indemnifying party is providing something of sufficient value to cover potential losses. |
Visual model
Understand valuable fast
An explainer image has not been generated for this term yet.
01
The landlord accepts rent payments as valuable consideration, obligating the tenant to occupy the unit.
02
A borrower provides a signed promissory note, which acts as valuable consideration obligating the lender to advance funds.
03
Franchisor offers brand usage rights as valuable consideration, obligating the franchisee to pay royalties.
Questions & answers
Common questions about valuable
What does valuable mean?
Valuable usually means having recognized worth, whether monetary or practical utility. In contracts, it matters because parties must provide something of value to create an enforceable exchange. Before signing, check that what you are giving is clearly defined as valuable consideration.
What is valuable in plain English?
A permission slip is valuable because you need it to go to the park; without it, you can't leave the house.
Why does valuable matter in a contract?
If something lacks legal value, the resulting promise is often unenforceable, leading to the promisor bearing the risk of having to honor the commitment. The party relying on the promise bears that primary liability.
When does valuable apply?
Valuable consideration must exist when a contract is formed; this happens at the point of mutual assent or acceptance by the receiving party. It remains valuable throughout performance until discharge.
Where does valuable appear in documents?
This term appears frequently in standard clauses within purchase agreements, promissory notes, and security instrument filings under UCC Article 9.
Who is affected by valuable?
The creditor requires a valuable promise from the debtor to secure payment. The indemnitor must provide something of value (like insurance coverage) to protect the indemnitee.
How does valuable work?
First, courts assess if the item or act provides benefit to the other side. Then, they determine if that benefit is 'sufficient,' meaning it has real legal significance beyond a trivial exchange. Finally, they confirm it was bargained for, not just gratuitously given.
What happens if valuable is missing or vague?
If you leave 'valuable' undefined in a contract, disputes flare up quickly. One party might claim they provided adequate value based on their internal accounting, while the other insists that subjective feeling doesn't equate to legal worth. This ambiguity forces judges to look at external evidence—like market prices or prior dealings—to determine if the exchange was truly sufficient for enforcement. If you use it vaguely in a settlement agreement, opposing counsel can argue the release only covers minor claims, leaving major liability hanging over your head.
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Wikipedia
Major League Baseball Most Valuable Player Award
The Major League Baseball Most Valuable Player Award (MVP) is an annual Major League Baseball (MLB) award given to one outstanding player in the American League (AL) and one in the National League (NL). The award has been presented by the Baseball Writers'...
Open on Wikipedia →Knowledge graph
Where valuable connects to real contract work
This layer links the term to nearby glossary entries, document use cases, and contract-risk guides so readers can move from definition to context without dead ends.
9nodes
Glossarypromissory notepromissory note often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause a...Glossaryagreementagreement often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause around...Glossaryconsiderationconsideration often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause aro...
BGRisk context hubGlossary meaning, document paths, and adjacent risk pages connected around this clause.
Use caseBill of Lading (BoL)Finance & Sales: Your cargo, your risk — unless the BoL says otherwise.Use caseNDALegal & Corporate: Signing an NDA is easy. Understanding what you just agreed never to say is harder.Use caseCheck a Real Estate Purchase Agreement Before SigningReal Estate Contracts: Upload a Real Estate Purchase Agreement to spot risky clauses, payment traps, ownership issues, and negotiat...RiskInsurance indemnity gap riskPlain-English risk guide for insurance indemnity gap risk.RiskMutual indemnity clause riskPlain-English risk guide for mutual indemnity clause risk.RiskUnlimited liability clausePlain-English risk guide for unlimited liability clause.
Source & disclosure
This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.
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