Detriment

In one sentence

Something a party gives up or agrees to do as part of a contract exchange.

Plain English

In contract law, detriment refers to what one party sacrifices or gives up to make a deal. It's the cost or burden you accept in exchange for what the other party offers. Detriment can be giving money, giving up a right, doing work, or promising to do something. The law doesn't require that the detriment be equal in value to what you receive—only that both sides experience some detriment. This mutual sacrifice is what makes a contract binding.

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Example

An employee agrees to work for a company for $50,000 per year. The employee's detriment is the time and labor they provide; the company's detriment is the $50,000 salary they must pay. Both sides suffer a detriment, which makes the employment contract valid.

Used in a sentence

“The court found that the plaintiff suffered sufficient detriment by giving up the right to sue in exchange for the settlement.”

Related terms

Contract

A legally binding agreement between two or more parties to do or not do something.

Benefit

Something of value a party receives or gains from a contract.

Consideration

Something of value exchanged by each party to make a contract binding.

Legal Value

Something of worth in the eyes of the law that can support a binding contract.

Nominal Consideration

Something of minimal or token value exchanged to make a contract legally binding.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Offeror

The person who makes an offer to enter into a contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.