Essential elements of consideration

Science-Based Supplements From Clinically Studie Raw, Ingredients With High Potency. Come With a 365-Day Money Back Guarantee. What are the elements of consideration? See full list on upcounsel. Past consideration involves something that was already given before the contract was signed.

The return of the wallet thus constitutes past consideration. Present consideration , most commonly cash in exchange for goods, is given at the time the promise is made. If you buy groceries for cash, the cash is your consideration , and the groceries are the consideration given by the store. This is a contract even though it is not spoken or written. Future consideration will be given after the contract is formed.

The product is payable when it is delivered. For example, you order a product online that will be delivered in one week. As described above, consideration does not need to be adequate, but it must be bargained for by both parties and legally sufficient. Legally sufficientmeans that the consideration consists of either: 1. 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.

Consideration will not be deemed sufficient by the court when: 1. The obligation is solely moral but not legal. It refers to events that have already happened. The party already has a legal duty to refrain or commit the act in question.

UpCounsel accepts only the top percent of lawyers to its site. Presence of consideration is one of the requisites of Valid Contract. That means both parties should get benefited mutually. Then only the Contract becomes capable of creating legal relations.

Having said that, consideration must meet other requirements. It is the price paid for contract. Illusory Promises: If the terms of a contract call for performance in such uncertain terms that the promisor has not. Moral obligation: while you may feel morally obligate. Firstly, consideration is a vital component of a binding contract.

The main focus is on performance of existing duty. The four component parts of the definition of consideration (given above) may well be described as the essentials of valid consideration. We shall now discuss these essentials one by one in detail. Further, the promise of service in the future is just as adequate a consideration of the service. So that, the promisee has to give something is return for the promise of promisor in order to convert a bare commitment made in his favors’ into a binding contract.

Marketing deals with identifying and meeting human and social needs. Essential Elements : 1. A need can be defined as the. Exchange and transaction:.

Needs can be best satisfied with a socially accepted process of exchange. Product is a generic term. If any act is done voluntarily by the promisee such act will not be taken as consideration. In every contract, agreement must be supported by consideration.

It must be lawful and real. Certainty and Possibility of Performance. The agreements, in which the meaning is uncertain or if the agreement is not capable of being made certain, it is deemed void. It need not necessarily be money, however, it should be something which has been agreed by the parties and has some value.

Usually, a contract without consideration is voi however, exceptions to this rule are specified in Section of the Contract Act.