What is it?
This term functions as a core element within contract law, specifically governing the concept of 'consideration' that binds the parties to an agreement.
valuable
UCC / CommercialLegal glossary term
Quick answer
Valuable usually means possessing recognized economic or legal worth. In contracts, it matters because it qualifies something as valid consideration, giving the agreement enforceability. Before signing, check if the benefit exchanged meets an 'adequate' threshold.
Definitions
What is valuable?
Legal Definition
A thing of value signifies something possessing recognized economic worth or legal significance. When a contract requires something to be valuable, it establishes an obligation that must carry corresponding benefit or detriment to enforceability. Courts often scrutinize whether the exchange meets the threshold of 'adequate consideration'—the key qualifier.
Plain-English Translation
It means something matters in the eyes of the law; like if your permission slip is worthless (just scribbles), nobody has to follow it.
Contract relevance
Why valuable matters in contracts
Ignoring the requirement for value can render a contract voidable or unenforceable, forcing the responsible party to face breach liability. The promisor bears this initial risk regarding sufficiency.
Document context
Where valuable appears in documents
| Document type | Section | Why it matters |
|---|---|---|
| Service Agreement | Consideration Clause | Confirms what the parties exchange to create a binding promise. |
| Purchase Order | Item Description/Price Field | Determines the monetary value of goods being bought or sold. |
| Statute (e.g., UCC) | Requirement for Exchange | Establishes that the bargained-for swap must have measurable worth under law. |
| Promissory Note | Principal Amount Section | Quantifies the specific sum owed, which is inherently valuable to the lender. |
Contract language
Common contract wording
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| Consideration of value | Something of recognized economic benefit or detriment | Ensure this isn't just a token gesture; it must have real worth. |
| Of demonstrable value | Having measurable market or legal significance | Ask: Can we put a dollar amount on this exchange? |
| Valuable consideration | The required element to make a promise enforceable | Verify the *quality* of the value, not just its existence. |
Red flags
Red flags to watch for
Wording examples
Clearer wording examples
Vague wording
Valuable (general)
Clearer wording
Having measurable economic worth or legal significance.
Vague wording
Adequately valuable
Clearer wording
Meeting a specific, agreed-upon standard of worth.
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
What to check before signing
1
Is there an explicit monetary value assigned?
2
If not monetary, is the benefit clearly described (e.g., service delivery, IP rights)?
3
Does the language imply a minimum level of worth?
4
Are there conditions that could strip the item/service of its value?
5
Is the valuation methodology objective or subjective?
6
Have both parties agreed on what 'value' means in this context?
Party impact
How valuable affects each party
| Party | What this party should check |
|---|---|
| Seller/Provider | Ensure the price covers more than just costs; it must reflect market worth. |
| Buyer/Client | Verify that what you give is legally recognized and substantial enough to bind the seller. |
| Lender (in debt instruments) | Confirm the principal amount has measurable value, not just a promise of future payment. |
| Contracting Party in General | Always check if your obligation requires giving something 'valuable' or merely 'something.' |
Comparison
valuable vs similar terms
| Related term | Plain meaning | Main difference from valuable |
|---|---|---|
| Consideration | The thing exchanged (the *act* of giving) | Valuable is the *quality* of that exchange; consideration is the presence of it. |
| Nominal Value | A very small, token amount (e.g., $1 for a license) | Nominal value still counts as valuable if the law accepts it; check for exceptions. |
| Legal Significance | Worthiness recognized by courts or statutes | This is broader than just market price; something can be legally significant even if it sells for zero dollars. |
Missing or vague
If valuable is missing or vague
If 'valuable' remains undefined, disputes will erupt over whether the exchange was truly binding. One party might claim they gave only a trivial gesture—a token fee, perhaps—while the other insists that minor payments constitute sufficient consideration under state law.
Courts often default to presumptions, but these can be shaky when the contract is complex or involves unique services. A vague term forces litigation onto the precise economic weight of that exchange.
Document map
Document section map
| Contract section | What to inspect |
|---|---|
| Consideration Clause | This section explicitly states what each party provides and whether it meets the standard of value. |
| Payment Terms | Inspect this to see if payments are fixed dollar amounts or vaguely described as 'fair market value.' |
| Scope of Work (SOW) | Reviewing the SOW helps define the *value* of the service being rendered—is it worth $10,000 or is it worth just a few hours of consultation? |
| Governing Law Clause | This dictates which state's law defines what constitutes 'adequate value' for enforceability. |
Visual model
Understand valuable fast
An explainer image has not been generated for this term yet.
01
Landlord accepts $100 for a lease requiring $2,000/month; the $100 is not enough to satisfy the requirement of valuable consideration.
02
Borrower signs loan documents promising future payments (a promise); this promise constitutes the necessary valuable exchange for the lender's immediate cash.
Document context
How valuable shows up in legal documents
Why does it matter?
Ignoring the requirement for value can render a contract voidable or unenforceable, forcing the responsible party to face breach liability. The promisor bears this initial risk regarding sufficiency.
When does it matter?
The term triggers immediately upon offer acceptance when the exchange of promises or goods is made. It must persist throughout performance until final discharge occurs.
Where is it usually seen?
You frequently encounter 'valuable' in UCC § 2-714 definitions and within clauses detailing consideration requirements in commercial leases.
Who is affected?
The creditor gains security because the debtor provides valuable collateral; conversely, the tenant risks eviction if they fail to provide valuable rent payments.
How does it work?
First, the parties must exchange a bargained-for act. Then, that act must possess recognized legal worth—it cannot be illusory. Within the contract terms, this value must be objectively measurable or reasonably ascertainable.
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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'...
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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.
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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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