Consideration

... Objectives: Successful students will be able to: * Identify the different types of consideration * Explain the rules of consideration Introduction A contract is different from a promise because a contract requires something called voluntary agreement by two or more parties. Nevertheless, not all agreements can be enforced by the courts. The courts decided they will not enforce promises made for free. Any promises made without any expectation of something in return, is merely a promise and will not be treated as a contractual agreement. Only promises supported by consideration will be enforceable in a court of law. Consideration is therefore something of legal value, which is bargained for and given in exchange for an act or a promise. A promise will not be enforced against the person who made it (promisor) unless the person to whom it was made (promisee) has given up something of legal value in exchange for the promise. The requirement of consideration means

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