The independent consideration clause refers to the nominal payment or action that is separately identified and provided by one party to another in exchange for specific contractual promises, ensuring the agreement is enforceable under contract law. This element is crucial because it demonstrates that a contract offer has been made and accepted with mutual obligations, adding to the validity and binding nature of the agreement.
Independent Consideration. (Check only one box and insert amounts.) (a) If Buyer terminates under this Paragraph 7B, the earnest money will be refunded to Buyer less $ 1,000.00 that Seller will retain as independent consideration for Buyer’s unrestricted right to terminate. Buyer has tendered the independent consideration to Seller upon payment of the amount specified in Paragraph 5A to the title company. The independent consideration is to be credited to the sales price only upon closing of the sale. If no dollar amount is stated in this Paragraph 7B(1) or if Buyer fails to deposit the earnest money, Buyer will not have the right to terminate under this Paragraph 7B. (b) Not later than 3 days after the effective date, Buyer must pay $___________as independent consideration for Buyer’s right to terminate by tendering such amount to the title company. Buyer authorizes escrow agent to release and deliver the independent consideration to Seller at any time upon Seller’s request without further notice to or consent from Buyer. If Buyer terminates under this Paragraph 7B, the earnest money will be refunded to Buyer and Seller will retain the independent consideration. The independent consideration will be credited to the sales price only upon closing of the sale. If no dollar amount is stated in this Paragraph 7B(2) or if Buyer fails to pay the independent consideration, Buyer will not have the right to terminate under this Paragraph 7B.
Independent Consideration. The Assignment Deposit being delivered by Assignee includes the amount of One Hundred Dollars ($100.00) as independent consideration for Assignor’s executing this Agreement and granting the Assignment Inspection Period hereunder (the “Independent Consideration”), which shall be retained by Assignor in all instances. If the Closing occurs or if this Agreement is terminated for any reason, Assignment Escrow Agent shall first disburse to Assignor the Independent Consideration. The parties expressly acknowledge and agree that, except as otherwise provided for herein (a) the Independent Consideration plus Assignee’s agreement to pay the costs provided in this Agreement has been bargained for as consideration for Assignor’s execution and delivery of this Agreement and for Assignee’s review, inspection and termination rights pursuant to this Agreement, and (b) such consideration is adequate for all purposes under any applicable law or judicial decision.
Independent Consideration. At any time Buyer is entitled to a return of the Deposit hereunder, the entire Deposit shall be returned to Buyer, except for $100.00 thereof (the “Independent Consideration”), which shall be paid to Seller as independent consideration to support Seller’s obligations under this Agreement. In addition, Seller acknowledges that (a) in performing its due diligence investigation of the Property, Buyer will incur expenses, and such expenses also constitute good, valuable and sufficient consideration for this Agreement, and (b) Buyer would not have entered into this Agreement without having the opportunity to perform such investigations and without having the right to terminate this Agreement in accordance with the provisions hereof. Accordingly, in addition to the $100.00 referenced above, separate consideration exists to support Seller’s obligations hereunder notwithstanding Buyer’s right to terminate this Agreement as provided herein.
Independent Consideration. Seller and Buyer agree that $100.00 of the Deposit will constitute non-refundable independent consideration (the “Independent Consideration”) for Seller’s execution and delivery of this Agreement and, notwithstanding any other provisions of this Agreement to the contrary, will be paid to Seller upon the earlier to occur of: (i) termination of this Agreement for any reason, or (ii) the Closing. The Independent Consideration will be applied against the Purchase Price at Closing.
Independent Consideration. The Deposit being delivered by Buyer includes the amount of One Hundred and No/100 Dollars ($100.00) as independent consideration for Seller’s performance under this Agreement (“Independent Consideration”), which shall be retained by Seller in all instances. If the Closing occurs or if this Agreement is terminated for any reason, the Escrow Agent shall first disburse to Seller from the Deposit, the Independent Consideration. The Independent Consideration shall be nonrefundable under all circumstances and shall not be applied to the Purchase Price at Closing. Buyer and Seller expressly acknowledge and agree that (a) the Independent Consideration, plus Buyer’s agreement to pay the costs provided in this Agreement, has been bargained for as consideration for Seller’s execution and delivery of this Agreement and for Buyer’s review, inspection and termination rights during the Due Diligence Period, and (b) such consideration is adequate for all purposes under any applicable law or judicial decision.
Independent Consideration. One Hundred Dollars ($100.00) of the Deposit (“Independent Consideration”) shall be released by Escrow Agent to Seller within 3 Business Days after receipt of the Deposit by Escrow Agent, which amount Seller and Buyer have bargained for and agreed to as independent and sufficient consideration for Seller’s execution and delivery of this Agreement. The Independent Consideration is non-refundable to Buyer under any and all circumstances, but applicable to the Purchase Price, and Seller shall retain the Independent Consideration upon any termination of this Agreement notwithstanding any other provision of this Agreement to the contrary.
Independent Consideration & Net Earnest Money. Five Thousand and No/100 Dollars ($5,000.00) of the Earnest Money is considered the “Independent Consideration” for all purposes of this Contract. The term Independent Consideration when used herein also includes the Extension Independent Consideration when and if delivered by Purchaser to Seller under Section 7(b) hereof. Except in the event Purchaser timely elects to terminate this Contract in accordance with Section 8(c) or Section 11(a) hereof, the Independent Consideration shall be non-refundable to Purchaser in all other cases and shall be paid over to Seller in the event of any termination of this Contract for any other reason (but shall apply to the Purchase Price if Closing occurs hereunder). The Earnest Money excluding the Independent Consideration is herein called the “Net Earnest Money.”
Purchaser shall have three (3) consecutive options to extend the Feasibility Period for an additional fourteen (14) days each by doing both of the following before the expiration of the initial Feasibility Period described in Section 7(a) hereof in the case of the first such extension option and before expiration of the Feasibility Period as previously extended, in the case of the second and third extension options: (i) Purchaser must give written notice to Seller and the Title Company of its election to exercise the applicable option to extend the Feasibility Period, and (ii) Purchaser must deposit with the Title Company, for immediate disbursement to Seller, the following applicable additional sum in cash (when and as paid, the “Extension Independent Consideration”): (i)$15,000.00 for the first extension option; (ii)$30,000.00 for the second extension option (additional to the first extension fee); and (iii)$60,000.00 for the third extension option (additional to the above 2 extension fees); which Extension Independent Consideration fees shall serve as additional Independent Consideration to Seller under this Contract.
Independent Consideration. Notwithstanding anything in this Agreement to the contrary, Five Hundred and No/100ths Dollars ($500.00) of the Deposit (the “Independent Consideration”) shall be paid to Seller and considered completely nonrefundable to Buyer in all events, it being the intent of the parties to recognize that such amount has been bargained for and agreed to as independent consideration for the rights extended to Buyer hereunder, including the right to terminate this Agreement during the Due Diligence Period as provided herein. The Independent Consideration shall be disbursed to Seller immediately following Buyer’s delivery of the Deposit into Escrow. In all instances under this Agreement in which Buyer elects to terminate or is deemed to have terminated this Agreement and the Deposit is returned to Buyer, and whether or not so specifically stated in this Agreement, Seller shall be entitled to retain the Independent Consideration when the Deposit is returned to Buyer. The Independent Consideration shall not be applicable to the Purchase Price or treated as consideration given by Buyer for any purpose other than as provided herein.
Independent consideration is a legal concept primarily used in contract law to denote something of value exchanged between parties, separate from the primary obligations of the contract. It acts as an inducement to make a party’s promise enforceable. In specific contexts, this term can refer to a small separate amount exchanged to ensure enforceability of certain clauses, like option contracts.
Independent consideration is often used in situations where a party seeks to make a promise binding without tying it directly to the larger contract. For instance, it is commonly seen in:
When drafting independent consideration, ensure the following:
Clarity: Clearly state the nature and purpose of the independent consideration in the contract.
Separation: Denote the independent consideration separately from other types of consideration or obligations to ensure its standalone value.
Example:
“In consideration for the option to purchase, Buyer agrees to pay Seller $100 as independent consideration, separate and apart from the purchase price.”
Independent consideration is commonly found within several types of contracts, including:
Option contracts: Where it serves to keep the offer open for a defined term.
Real estate agreements: To secure exclusive rights or extension options.
Employment contracts: Particularly those including non-compete or confidentiality agreements.
By having independent consideration, parties ensure specific clauses remain enforceable even if the overall contract is contested or defunct.
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
An independent contractor relationship clause defines the working relationship between parties, specifying that the contractor operates autonomously and is not an employee of the hiring party. This clause clarifies that the contractor is responsible for their own taxes, insurance, and adherence to laws, and it delineates the absence of benefits typically associated with employment.
An independent contractor clause establishes the relationship between the parties, specifying that the contractor is not an employee and will work independently, managing their own schedule and methods of completing the work. This clause typically outlines the responsibilities of the contractor, their lack of entitlement to employee benefits, and their obligation to pay their own taxes.
An independent contractor clause specifies that the relationship between the parties involved is that of independent contracting rather than employment, meaning the contractor is responsible for their own taxes, benefits, and liability. It also typically delineates the expectations, responsibilities, and limitations of both parties to avoid any misclassification or legal issues.
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