In a sales contract, consideration refers to the value exchanged between the buyer and seller. It`s what each party gives up in exchange for what they receive. A contract without valid consideration is not enforceable in court, which is why it`s essential to know what would not be legally sufficient for use as consideration in a sales contract. Here are some examples:

1. Illegal goods or services

Consideration that involves illegal goods or services is not legally sufficient. For instance, if someone offers to buy a stolen car or sell drugs in exchange for a product or service, that consideration is illegal, and the contract is not enforceable.

2. Nominal consideration

Nominal consideration refers to an amount of money or other value that is so low that it`s not considered a fair exchange. For example, if someone offers you one dollar for a car worth $20,000, that consideration is not legally sufficient.

3. Past consideration

Past consideration is something that has already been performed, and it`s not sufficient consideration for a contract. For example, if someone promises to pay you for work you did last year, that promise is not legally binding because you already performed the work.

4. Promises to do something that is not possible

Consideration that involves promises to do something that is not possible is not legally enforceable. For example, if someone promises to deliver a product that doesn`t exist or perform a service that is impossible, that consideration is not legally sufficient.

5. Illusory consideration

Illusory consideration refers to a promise that is so vague that it`s not considered a real promise. For example, if someone promises to pay you “whatever it`s worth,” that promise is not legally binding because it`s too vague.

In conclusion, valid consideration is a critical element in a sales contract. It`s essential to ensure that the consideration is legal, fair, and possible. Any consideration that falls outside these parameters is not legally sufficient and cannot be enforced in court. As a buyer or seller, it`s crucial to know what constitutes valid consideration to avoid any legal disputes in the future.