The Key Elements Of Contract

1796 Words8 Pages
2This article describes one of the best elements of contract called consideration and on what extent consideration is valid or not. Thousands of years ago people use barter system to exchange goods and services to meet their needs without any special law than invention of currency make it easy to exchange goods, eventually the law makes it valid and more reliable. There are six elements in which the parties are generally bound to do something in future such as Offer and Acceptance, consideration, intention, invitation to treat, Legal capacity. Consideration appeared in 1916 and become one of the basic and essential elements for the development of contract. Consideration is nothing but an enforceable agreement where a promissory promise to exchange or to do something in future and promisee accept to perform such act in return and the parties intend to bind through agreement. The question arises that whether the consideration is legally valid or not under some conditions. Consideration could be small or long, good or bad. Earlier nominal consideration was adequate in contract. It does not matter that the consideration having the same values or same benefit. The courts uses sufficient consideration while setting the disputes or making the decision. Where there is money, payment and exchange of goods is involved, consideration considered to be more valuable. Contracts are frequently exercise commercially such as construction, purchase and sale of property, monetary assistance,
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