THE NATURE OF PRIVATE MEMBERSHIP AND CONSIDERATION
A legal contract requires valuable consideration to be valid and binding. The nominal $1.00 membership fee serves as this formal, legal consideration, establishing a binding private agreement between two private individuals.
Once executed, this relationship is governed strictly by private contract law rather than general public commercial statutes. Because the agreement is formed in the private realm exclusively between members, it operates outside the scope of regulatory mandates designed solely for public commerce.
Public Privileges vs. Private Rights
Certain content, education, and services cannot be offered to the general public without specific administrative licenses or government oversight. In a public capacity, individuals operate under government-granted privileges and regulatory jurisdiction. By entering into a Private Membership Association (PMA), members intentionally relinquish those public claims in exchange for exclusive, member-only access and private services.
Just as public regulatory jurisdiction is established through voluntary agreement, individuals retain the inherent right to contract privately with one another—provided the agreement remains ethical, non-misleading, and does not cause physical, emotional, or financial harm.
The Private Club Precedent
This legal framework is widely utilized by private organizations and social clubs to operate outside standard public restrictions (such as operating hours or local commercial regulations). When a private entity serves its members, it is not “selling to the general public”—it is providing specialized services within a closed, mutually agreed-upon private community.
