Consideration

Consideration

The section relating to “Authorization to Sign” [C10] contained exemplars to avoid later challenges to the validity of a contract due to alleged lack of signing authority. By comparison, the following exemplar is designed to obviate a situation where a party later refutes the enforceability of a signed agreement on the grounds that it lacks adequate consideration:

Exemplar C17-1

Customer acknowledges and agrees that Contractor's cooperation with Customer concerning the purpose described herein constitutes sufficient consideration for this Agreement to constitute a binding agreement of Customer, legally enforceable by Contractor. To signify this understanding and commitment of Customer, Customer has caused its authorized representative to execute this Agreement effective as of the date below.