Value (law)

Value (law)

Value within the context of law, particularly with respect to contracts, is a concept closely related, but not identical, to that of consideration.

At common law, certain transferrable obligations were only enforceable if the transferee had acquired them "for value". Under the rules of equity, the rights of a bona fide purchaser for value would not be interfered with. State courts of various jurisdictions in the US adopted varying definitions of what constituted "value".

Under the Uniform Commercial Code, except with respect to Article 3, a person gives value for rights if he acquires them in exchange for:
# a binding commitment to extend credit or for the extension of immediately available credit;
# as security for or in total or partial satisfaction of a preexisting claim;
# accepting delivery pursuant to a preexisting contract for purchase;
# generally, any consideration sufficient to support a simple contract.

Under Article 3 of the Code, a negotiable instrument is transferred for value if the transferee receives in exchange:
# a promise of performance, to the extent the promise has been performed;
# a security interest or other lien in the instrument other than a lien obtained by judicial proceeding;
# the total or partial discharge of an antecedent claim against any person, whether the claim is due;
# another negotiable instrument; or
# an irrevocable obligation to a third party by the person taking the instrument.

The setting forth in express terms of what is "value" in the context of commercial transactions was a bold step forward by the drafters of the UCC, since the jurisdictional distinctions as to value made certain transactions valid in one state and invalid in another.


Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • value — val·ue 1 / val yü/ n 1 a: a fair return or equivalent in goods, services, or money for something exchanged received good value for the price b: valuable consideration at consideration …   Law dictionary

  • Value Added Tax Act 1994 — (VATA) EC Directive 2006/112/EC (which recast the Sixth VAT Directive (77/388/EEC) with effect from 1 January 2007) is the principal directive governing value added tax and is implemented in the UK by the VATA. It sets out the framework of the… …   Law dictionary

  • value–added tax — value–ad·ded tax n: a tax levied at each addition of value in the processing of a raw material, the performance of a service, or the production and distribution of a commodity with each payer except the consumer reimbursed from payment at the… …   Law dictionary

  • law — / lȯ/ n [Old English lagu, of Scandinavian origin] 1: a rule of conduct or action prescribed or formally recognized as binding or enforced by a controlling authority: as a: a command or provision enacted by a legislature see also statute 1 b:… …   Law dictionary

  • value added tax — index ad valorem Burton s Legal Thesaurus. William C. Burton. 2006 value added tax …   Law dictionary

  • value for money — (VfM). In a PPP, VfM means that the project agreement gives a net benefit to the awarding authority, defined in terms of cost, price, quality, quantity, or risk transfer, or a combination of these. Practical Law Dictionary. Glossary of UK, US and …   Law dictionary

  • value-added tax — (VAT) a tax levied on the supply of goods or services in the UK and on the importation of goods into the UK. The imposition of VAT was required as a condition of the UK s entry into the European Community, and the original provisions were… …   Law dictionary

  • value in exchange — index par (face amount) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • value incorrectly — index misconceive Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • value received — index income, proceeds, profit Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”