For Value Received Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of For Value Received, written in plain English, along with examples of how it is used.
What is For Value Received?
(prep) For Value received is the phrase used to acknowledge the receipt of compensation for which the present action is taken, whereby it makes a valid and enforceable contract. The phrase is used while giving promissory notes, deed etc.
History and Meaning of For Value Received
The phrase "For Value Received" has been a critical element in the world of contracts for centuries. It is used to indicate that one party received compensation for a particular action or promise. The phrase became popular in the 18th century when promissory notes became common.
The essence of "For Value Received" is that a contract must be supported by consideration. Consideration is the value that one party receives from the other party. It is necessary for a contract to be valid and enforceable. This legal phrase indicates that the consideration has taken place, and both parties agree to their respective obligations.
Examples of For Value Received
- When John sells his car to Sam and gives him the title to the vehicle, he might write "For Value Received" on the title to indicate that Sam paid him a certain amount for the car.
- A person might write a promissory note that states "I promise to pay the bearer $10,000 in six months, for value received." This phrase indicates that the person received something of value in exchange for the promise.
- In a deed to transfer property between parties, the phrase "For Value Received" is used to indicate that one party has received payment for the transfer of the title.
Legal Terms Similar to For Value Received
- Consideration: A legal term that refers to something of value that one party gives to the other in exchange for something else.
- Promissory note: A written contract in which one party promises to pay another party a specific amount of money at a specific time.
- Deed: A legal document that transfers ownership of property from one person to another.