Legal Question in Business Law in California

Barter Bill of Sale including $1.00

We exchanged a tank with another company. Two tanks

of of equal value. Writing two bill of sales with each

stating we swaped tanks plus gave/rec'd $1.00. I thought

I learned in business school (1970s) that using the $1.00

had come legal reason. Should I include the exchange of

$1.00 or does it matter? Thank you.


Asked on 9/02/05, 3:10 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Barter Bill of Sale including $1.00

Contracts reciting the giving of $1.00 for something are usually so written to satisfy the requirement of "consideration."

Generally, contracts that lack reciprocal considerations are unenforceable. For example, in "I'll paint your house for $1,000" the painter gives his services as his consideration, while the homeowner gives his promise to pay $1,000. "I'll paint your house" isn't an enforceable promise by itself, and neither is "I'll pay you $1,000."

Specifying a nominal money consideration in a contract to swap tanks is probably unnecessary. Assuming both tanks have some value, but the tanks are not identical, the contract would have mutual consideration and would not fail for want of consideration.

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Answered on 9/02/05, 5:35 pm


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