What are the rules that govern consideration in a valid contract?

Answer 1

1. Consideration must move at the desire of the promisor-The act or forbearance must be done at the desire or request of the promisor. If it is done without his request or at the request of a third party it will not be a valid consideration.

2. Consideration need not be adequate but must be sufficient-It is not necessary that there must be full return for the promise. There must be something rather than nothing. The law has left the quantum of consideration to be decided by the respective parties. Thus, the law will not object to the inadequacy of consideration.The law will not enforce a promise even if it is without consideration.

3. Past consideration is not consideration

4. Forbearance to sue may be good consideration

5. Performance of existing duties.

A person who has not provided consideration cannot sue to enforce a promise.

Answer 2

A contract will fail for lack of consideration as a required element of a valid contract. If sufficient consideration is arguably not present, an affirmative defense can be asserted in the answer to the complaint, negativing a claim as to a purported contract's existence. However, the doctrine of promissory estoppel, where its elements are satisfied, can support a sought enforcement of exchanged promises even where a purported contract fails.

Answer 3

Contract is an agreement between two or more people with an intention to form a legal binding .

THE ESSENTIAL ELEMENTS ARE .

Offer , Acceptance , Consideration , Capacity , Guinea consensus and Legality .

Consideration is an exchange of promise between the Offer and the Offeree .

Mean its something of detriment from the promisee and benefit to the promisor . It need to be sufficiently certainty and complete to form a contract , missing of those will result the contract being unenforceable or void . It can be in form of Executory , Executed or Forbearance .

Past consideration may not enforce in court . For example A order a meal in a restaurant which he consumed with B and after all B promised A that he will contribute $ 4 as to the meals , A will not Sue B for a breach of contract as the Consideration has already past .

Its anything of valuable value to the court does not measure the economically value of the property Eg a wife was allow to stay in a house for $ 1.50 a year , though the value involve was very less it was consider as a legal contract .

Answer 4

To meet the legal requirements for consideration there must be three components. There must be a bargain or contract, an exchange and the exchange must be of value to each party.

Answer 5

Roles of consideration