Short note on Consideration

Question

Write short note on Consideration?

Answer 1

Consideration is the price for which the promise (or the act) of another is bought. It is an exchange of value that must move from each party of the contract but not necessarily to the other party. It is enough to promise a benefit to someone; it is not necessary to provide a benefit to the other party to the contract. “The main goal of contract law is to enforce bargains. And as business people know, a bargain involves more than an offer and an acceptance. It also involves a mutual exchange of value.”

Consideration offers a sure legal test for binding commercial relationships. Without consideration, a contract is simply a gratuitous promise that is not enforceable. There must be sufficient consideration, which is anything of value in the eyes of the law. However, consideration does not have to be adequate, meaning that it does not need to have the same value as the consideration given in exchange. The court will not assess the adequacy of the consideration unless there are special circumstances such as suspicions of fraud or undue influence. However, a person who requests goods or services from another is obligated by an implied promise to pay a reasonable price for the goods or services. Rather than seeking damages for breach of contract, the supplier of the goods or services would seek payment under the principle of quantum merits (reasonable payment for services rendered).