Bargained for agreements, also known as mutual agreements, are an essential aspect of contracts. These agreements typically involve two or more parties who agree to exchange something of value, such as money, goods, or services. In legal terms, a bargained for agreement is defined as a promise that is given in exchange for something of value.
In layman’s terms, this means that both parties are receiving something of value in return for their promise. For example, if a company agrees to provide a service to a customer, the customer promises to pay for that service. In return, the company promises to deliver the service as agreed upon. Each party has given something of value, which is the basis for the agreement.
Bargained for agreements are crucial in any business transaction as they help to establish the terms and conditions of the agreement. These agreements are also essential in determining the legitimacy of a contract, as they ensure that both parties have voluntarily entered into the agreement and have received something of value.
Courts will only enforce contracts that contain a bargained for agreement. This means that if one party fails to deliver what was promised in the contract, the other party can take legal action to enforce the agreement. For example, if a customer fails to pay for a service that was provided, the company can take legal action to recover the payment.
It is essential to note that not all promises are considered to be bargained for agreements. For example, if a company promises to provide a service without requiring anything in return, that promise is not considered to be a bargained for agreement. Similarly, if a party promises to do something that they are already legally obligated to do, that promise is also not considered to be a bargained for agreement.
In conclusion, a bargained for agreement is an essential aspect of any contract. It is a promise that is given in exchange for something of value, and it ensures that both parties have entered into the agreement voluntarily and have received something of value. These agreements are crucial in establishing the terms and conditions of the agreement, and they help to determine the legitimacy of the contract. Without bargained for agreements, contracts would not hold as much weight in the eyes of the law.