From the beginning of American jurisprudence, our law of contracts has required the presence of “consideration” in order for a contractual obligation to be enforceable. Stated simply, both parties to a contract must be required to give up something and receive something as part of the bargain. The concept of consideration was taken from the English common law and goes back centuries. At common law, if I promised to paint your house without charge and for no apparent benefit to me, my promise would not be enforceable legally; consideration would be lacking.
Sometimes it is difficult to identify what the consideration for a contract is. Recognizing this practical reality, the Pennsylvania Legislature in 1927 adopted the Uniform Written Obligations Act. The Act provides that a written promise shall not be unenforceable for lack of consideration if the writing contains an express statement that the signer “intends to be legally bound”. From a drafting standpoint, if there is any question about the presence of consideration in a written document, it is good practice to include language whereby the parties to the contract confirm in writing their intent to be legally bound by its terms.
Sometimes it is difficult to identify what the consideration for a contract is. Recognizing this practical reality, the Pennsylvania Legislature in 1927 adopted the Uniform Written Obligations Act. The Act provides that a written promise shall not be unenforceable for lack of consideration if the writing contains an express statement that the signer “intends to be legally bound”. From a drafting standpoint, if there is any question about the presence of consideration in a written document, it is good practice to include language whereby the parties to the contract confirm in writing their intent to be legally bound by its terms.
– Stu Cohen