A consideration is the commitment of a certain person or company to make a payment to its counterpart for a transaction. That is, the remuneration received for the delivery of money, merchandise or a service.
The consideration is followed, first, after having caused a benefit. That is to say, that prior to the consideration there has been a provision of a product or service that a client has contracted and has to return it.
As we can see, this concept is directly related to the issue of finance of products or services. In the same way, it will be convenient for us to see those most outstanding characteristics that are presented in the considerations.
Characteristics of the consideration
The most outstanding characteristics of the consideration are:
- The consideration is born as an agreement between both parties to an operation: debtor-creditor the seller-buyer.
- The consideration can be made up of an economic quantity or transaction of assets. When this operation occurs, it is possible to combine both modalities.
- The period of the consideration is not fixed: it can be prolonged or modified, depending on the quotas that have been agreed between the parties. If it is a loan and it lasts a long time, the interests grow.
- Unlike the purchase, the consideration allows the seller to deliver the good or service within a certain period (when the installments have been completed, for example).
- Default interest arises when the pending installment of a loan is delayed, in addition to being able to lose the right to future loans due to the lack of payment of said person.
- The lack of consideration means breach of contract, leading to legal and financial claims against the offender.