Failure Of Consideration Legal Meaning and Definition

Here is a simplified definition of the legal term Failure Of Consideration.

Failure Of Consideration (noun)

Definition: A term used in contract law where one party does not deliver the goods or services promised. It occurs when the value of the goods or services a person has agreed to exchange in a contract becomes worthless or damaged, resulting in the inability of one party to fulfill their part of the agreement. This can justify withholding payment, demanding performance, or taking legal action.