Quick Answer: What Are The Four Types Of Mutual Consideration?

What is legally sufficient value?

Legally Sufficient Value Legally sufficient means that the consideration consists of either: A promise by a party to do something he or she is not legally required to do.

A promise for a party to do something he or she would not otherwise have an obligation to do..

Anything of value promised by one party to the other when making a contract can be treated as “consideration”: for example, if A signs a contract to buy a car from B for $5,000, A’s consideration is the $5,000, and B’s consideration is the car.

n. the usefulness or significance of records to document and protect the rights and interests of an individual or organization, to provide for defense in litigation, or to demonstrate compliance with laws and regulations (Citations)

What are the three types of consideration?

Kinds of ConsiderationExecutory Consideration or Future Consideration,Executed Consideration or Present Consideration, or.Past Consideration.

What are the six types of consideration?

Me too!1.An offer made by the offerer.2.An acceptance of the offer by the offeree.Consideration in the form of money or a promise to do or not do something.Mutuality between parties to carry out the promises of the contract.Capacity of both parties in mind and age.Legality of terms and conditions.

Free Consent. According to Section 13, ” two or more persons are said to be in consent when they agree upon the same thing in the same sense (Consensus-ad-idem). According to Section 14, Consent is said to be free when it is not caused by coercion or undue influence or fraud or misrepresentation or mistake.

What are the two basic elements of consideration?

Thus, there are two basic elements to consideration: (1) Legal Sufficiency (something of value in the eye of the law) and (2) bargained for exchange.

Rules Governing Consideration in ContractsConsideration must Move at the Desire of the Promisor.Consideration may Move front the Promisee or any other Person.Consideration may be Past, Present or Future.Consideration need not be Adequate.Consideration must not be Illusory but should be Real.

What are the four types of consideration?

Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.

What are the 3 requirements of consideration?

Each party must make a promise, perform an act, or forbear (refrain from doing something).

What are two exceptions to the rule requiring consideration?

One exception to the rule requiring consideration is promissory estoppel. In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.

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.

What is consideration explain?

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.

What are the essential elements of valid consideration?

Essentials of Valid ConsiderationIt must move at the desire of the promisor: … It may move from the Promisee or any other person: … It may be past, present or future: … It need not be Adequate: … It must be Real:

What is consideration and its types?

Consideration is classified as one of two types: executed: when the promise has been performed within the meaning of the contract, or. executory: when the promise has not been performed.

What are the elements of consideration?

Elements of consideration 1. A performance or a return promise must be bargained for. 2. A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.

What is a valid consideration?

Consideration is some thing of value promised by one party to another while entering into a contract. For a consideration to be valid there must be a promise from both sides. … This means that there must be a promise by one party against the promise of the other party.

What is the general rule of consideration?

Consideration, which must be given in order to make a contract legally binding, is legally sufficient and bargained-for value, given by the promisor in return for the promisee performing or refraining from performing some act which results in a detriment to the promisee and/or a benefit to the promisor.