What are the rules of consideration?
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Keeping this in view, what is the law of consideration?
1) payment or money. 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. In a contract, one consideration (thing given) is exchanged for another consideration.
Subsequently, question is, what is consideration example? The definition of consideration is careful thought or attention or compassionate regard for someone or something. An example of consideration is someone deciding between two options for dinner. An example of consideration is someone bringing a friend dinner who just had a baby.
Correspondingly, what are the elements of consideration?
A legally binding contract needs three main elements: an offer, consideration, and acceptance. While the terms "offer" and "acceptance" are fairly straightforward -- an offer is made, and either rejected or accepted -- "consideration" refers to something of value that is being gained through the contract.
What are the essential elements of lawful consideration?
Basic Understanding of Consideration
- Example 1 – Doing something.
- Example 2 – Not doing something.
- (i) Consideration must move at the desire of the promisor.
- (ii) Consideration may move from the promisee to any other person.
- (iii) It can be in the past, present or future.
- (iv) It must have value in the eyes of the law.