Montana Code Annotated

Mont. Code Ann. § 28-2-801 (2026)

What Constitutes Good Consideration

✓ current as of May 2026
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TITLE 28. CONTRACTS AND OTHER OBLIGATIONS

CHAPTER 2. CONTRACTS

Part 8. Consideration

What Constitutes Good Consideration

28-2-801. What constitutes good consideration. Any benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by the person, other than prejudice that the person is at the time of consent lawfully bound to suffer, as an inducement to the promisor is a good consideration for a promise.

History: En. Sec. 2160, Civ. C. 1895; re-en. Sec. 5001, Rev. C. 1907; re-en. Sec. 7503, R.C.M. 1921; Cal. Civ. C. Sec. 1605; Field Civ. C. Sec. 780; re-en. Sec. 7503, R.C.M. 1935; R.C.M. 1947, 13-501; amd. Sec. 784, Ch. 56, L. 2009.

Notes of Decisions
Cited in 36 cases (3 in the last 5 years), 1979–2025 · leading case: Associated Mgmt. Servs., Inc. v. Ruff, 424 P.3d 571 (Mont. 2018).
Associated Mgmt. Servs., Inc. v. Ruff, 424 P.3d 571 (Mont. 2018). · cites it 6× “Legally sufficient contract consideration requires: (1) a benefit offered by a promisor to another, or a promisor's offer to suffer a detriment to the other; (2) offered by the promisor in exchange for or to induce a reciprocal benefit from or detriment suffered by the other;…”
Nitzel v. Wickman, 940 P.2d 451 (Mont. 1997). · cites it 10× “"Consideration" is defined at § 28-2-801, MCA, as: Any benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by such person, other than such as he is…”
Junkermier, Clark, Campanella, Stevens, P.C. v. Alborn, Uithoven, Riekenberg, P.C., 2016 MT 218 (Mont. 2016). · cites it 5× “¶27 Consideration is: Any benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by the person, other than prejudice that the person is at the time of…”
Stensvad v. Miners & Merchants Bank, Etc., 640 P.2d 1303 (Mont. 1982). · cites it 6× “Such consideration meets the statutory definition of good consideration, section 28-2-801, MCA, a benefit agreed to be conferred upon a promissor to which the promissor is not likely entitled, or a prejudice suffered or agreed to be suffered by the promisee other than what he is…”
State v. Keys, 1999 MT 10 (Mont. 1999). · cites it 4× “See § 28-2-801, MCA. Valid contract consideration includes the promise to refrain from suing or pressing a claim.”
Lee v. Shaw, 822 P.2d 1061 (Mont. 1991). · cites it 6× “Consideration is "[a]ny benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by such person .”
Chipman v. Nw. Healthcare Corp., 14 MT 15 (Mont. 2014). · cites it 3× “¶ 20. In Hernandez, we found that consideration exists when an employee agrees to a policy at the time of hiring.”
Access Organics, Inc. v. Hernandez, 2008 MT 4 (Mont. 2008). · cites it 3× “Section 28-2-801, MCA, provides that “[a]ny benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by such person, other than such as he is at the time…”
Boise Cascade v. First SEC. Bank of Anaconda, 600 P.2d 173 (Mont. 1979). · cites it 3× “Consideration is defined in section 28-2-801 MCA as “[a]ny benefit conferred or agreed to be conferred upon the promisor by any other person .”
Hartfield v. City of Billings, 805 P.2d 1293 (Mont. 1990). · cites it 4× “Consideration is defined by § 28-2-801, MCA, as: Any benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by such person, other than such as he is at…”
Johnson v. Est. of Shelton, 754 P.2d 828 (Mont. 1988). · cites it 3× “Johnson gave up valid consideration for this quitclaim deed since she relinquished a quitclaim deed on the Washington property, in which she had a contingent interest, in order to clear all titles.”
Norwood v. Serv. Distrib., Inc., 2000 MT 4 (Mont. 2000). · cites it 2× “” Pursuant to § 28-2-801, MCA, “[a]ny benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by such person, other than such as he is at the time of…”
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