Insufficiency Of Consideration Is Immaterial, But An Agreement Without Consideration Essay

A legally binding promise must also always be supported by consideration, a prerequisite defined as “the exchange of promises from each party- from the promisor to the promisee”. There is uncertainty in whether the consideration offered in this situation is sufficient or not. Moral obligations regarding “natural love and affection” are not deemed to be sufficient consideration unless there is a legal obligation involved. Whether Billy’s initial decision to work on the farm creates a sufficient enough legal obligation for

An agreement not supported by consideration on both sides is nudum pactum (‘a naked agreement’) and unenforceable.

A contract is a legally obligatory promise or set of promises (Bagley, C. 2013). If this promise is broken, either party involved can be legally responsible and take the other party to court. There are four basic elements in the creation of a valid contract. The first consist of an agreement between the parties involved, by an presented offer and acceptance. The second states that the parties’ promises must be supported by something of worth, known as consideration. The third advises both parties must have the ability to enter into a contract. The fourth element states the contract must have a legal purpose (Bagley, C 2013).

A contract is formed when an offer by one party is accepted by the other party. Consideration is the price paid for the promise of the other party. The price must be something of value, although it need not be money. Consideration may be some right, interest or benefit going to one party or some, losses or responsibility given, suffered or undertaken by the other party.

A contract requires four elements to be valid. Essential elements in any contract include the following: agreement, consideration, legal ability, and a legal object (Kubasek, Browne, Herron, Dhooge, & Barkacs, 2016). The agreement includes the offer made to the other party who then agrees to enter into the contract. The consideration includes the exchange each party receives as a result of the contract. The legal ability is capacity one has to enter into a legal contract. The legal object is the legality of the contracted issue. These elements together create an effective, valid contract.

A legal contract arises when there is an offer, acceptance of that offer and also a sufficient consideration to make the contact valid. There are five essential elements that make a contract legal and these includes;

Mutual assent and consideration go together so this paper will argue against them together. Mutual assent is the idea that all the parties in a contract know what they are contracting to and agree to it. As defined in Charles S. Knapp, Nathan M. Crystal, and Harry G. Prince’s Problems in

A contract comes into existence with the initiation of an offer made by one party, which in turn should be ‘accepted’ by the other party. The element of offer and acceptance thus initiate the legal process of the formation of a valid and binding contract. The significance of acceptance with respect to the contract laws stems from the fact that the proposed offer must be accepted by the promisee and forthwith be communicated to the promisor. Together offer and acceptance create a promise which can

Every contract is based on the concept of agreement. A contract is defined as a legal agreement consisting of exchange of promises which is recognized by law as giving rise to enforceable rights and obligations. The test of agreement is used to ensure whether or not there is a contract between the parties. Whereas the objective test ensures certainty, the same cannot be said about the subjective test of agreement. The objective test of agreement is when the court decides whether there is contract based on the outward appearance of what constitutes the contract. However the subjective test of agreement involves trying to establish whether there was a “meeting of minds” when the contract was made. That is, to try to figure out the mental state of mind of the parties involved during the time the contract was made.

The four elements of a valid contract are offer and acceptance, meeting of the minds, consideration and competent parties. The contract must cover a legal purpose or objective as well (Binder, 2012). The objective theory of contracts holds that contract formation is dependent on what is communicated, rather than what is thought by one of the parties (Barnes, 2008).

The relevant rules are every simple contract must be supported by consideration, a promise to fulfil the terms of a contract is not always good consideration, and the rule that an agreement that is commercial in character can amount to a binding contract

other in order to form a contract, the value of the consideration need not be

The statement in this question is “Consideration is the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract. However, “past consideration is not considered a good consideration”. Please illustrate your answer with reference to 3 articles and case laws.”

Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.

Conceptually, reasonable expectations of honest men and sanctity of contract are not in conflict. Indeed, they often point to the same direction – it is the reasonable expectation of an honest man that an agreement should be executed. Although it is observed that the two themes usually work side by side, this essay argues that in regards to the rules of acceptance of unilateral contracts, the English courts place more emphasis on reasonable expectations when making decisions.