CONSIDERATION IN A CONTRACT

 

Every party in a contract must give something valuable that attracts the other party to a contract, this valuable something is known as consideration. In a contract, consideration is exchanged with another consideration.  The contract may be termed as unenforceable due to the failure of the consideration. Consideration is as a result of either a promise to do something or a promise not to do something.  A contract is deemed to be legally binding. Consideration is the benefit which is argued between the concerned parties. In other words, consideration is what one gives in the deal to get out of the deal.  In every contract, there are promisor and promise where each receives a benefit and each also suffers a detriment. Consideration is one of the elements of the contract. It must be of value to one party and it is normally exchanged for a promise in the eyes if the law. Precisely consideration does not have to be money but should be something of value like an object or service.  The consideration must not be passed and must move from the promise.  In addition, consideration must be enough and the existence of public duty will not lead to a valid consideration.  Payment of a debt is not a good consideration. However, the part payment can be a good consideration if the payment was made earlier, where the payment was made by the third party and where the claim is unqualified. The consideration is vital in a contract because for a contract to be termed as enforceable both parties must take part. Consideration is the center of the participation in both parties. Consideration in a contract is equal to a reason that makes the contract enforceable.

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