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What Constitutes a Valu Able Consideration


WHAT CONSTITUTES A VALU ABLE CONSIDERATION. In general a valuable consideration as applied to the law of commercial paper is any consideration sufficient to support a simple contract. Thus a cross acceptance, the for bearance of a debt of a third person, the compro mise of a disputed liability, or a debt barred by the statute of limitations, is held to constitute a valuable consideration. (Benj. Chalmers, B. N. & Checks, Art. 82.) So an antecedent or pre-existing debt will be a valuable consideration in support of a bill or note, when the bill is received in absolute pay ment of the original debt, if nothing but a con ditional payment the hoider's rights will be determined by a subsequent rule governing bills taken as collateral security. (Bank v. Gilliland, 23 Wend., 311; Bardsley v. Delp, 88 Pa. St., 420.) A valuable consideration is defined by Lush, J., in Currie v. Misa, to L. R., Ex., 162, as "some right, interest or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other." Its adequacy will not be investigated if given in good faith, but where the consideration is not in good faith or there is fraud or mistake, or the consideration is illegal, or the parties are so situated that an unfair advan tage is taken by one of them, as where one drives a hard bargain with an expectant heir or reversioner, the consideration may be questioned in actions between the parties. (Tiedeman, Com. Pap., Sec. 154; Nevill v. Snelling, 15 Ch. D., 679; Thomas v. Thomas, 7 Wis., 476.) A mere moral obligation, the giving up of a void note, or a voluntary gift of money will not constitute a valuable consideration. (Eastwood v. Kenyon, II A. & E., 438; Hill v, Wilson, 8 L. R. Ch., 894.)

valuable and debt