Contract Lacking Consideration

Consideration

Contract lacking consideration are not enforceable, parties my voluntarily perform contract

Something of a legal value given in exchange of a promise

It can be in the following forms

• Tangible payment

• Performance of an act

• Forbearance – giving up / forgiveness - of legal right or anything else of legal value

• Non-economic form of consideration for specified time period – refraining from smoking

Requirement:

1- Legal value : something in legal value must be given

• promisee suffer legal detriment and promisor receive legal benefits

2- bargained ( make a deal ) for exchange

• contract must arise from – parties engage in exchange that leads to contract

It is anything of value promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, abstinence from a future action, and much more. Consideration to create a legally enforceable contract entails a bargained for, legal detriment incurred by the promisee OR a legal benefit to the promisor.

a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. Consideration must be of value (at least to the parties), and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration)

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Consideration is an essential element for the formation of a contract. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do. In a bilateral contract—an agreement by which both parties exchange mutual promises—each promise is regarded as sufficient consideration for the other. In a unilateral contract, an agreement by which one party makes a promise in exchange for the other's performance, the performance is consideration for the promise, while the promise is consideration for the performance.

Consideration must have a value that can be objectively determined. A promise, for example, to make a gift or a promise of love or affection is not enforceable because of the subjective nature of the promise.

definition of contractual capacity:

the ability of an individual to enter into a legally binding contract. A party's contractual capacity may be affected by age, mental capacity, mental illness, intoxication and other factors defined by law.

Bilateral Contract An agreement formed by an exchange of a promise in which the promise of one party is consideration supporting the promise of the other party.

A void contract, also known as a void agreement, is not actually a contract. A void contract cannot be enforced by law. Void contracts are different from voidable contracts, which are contracts that may be (but not necessarily will be) nullified.

Features of Void agreements:

• An agreement made by incompetent parties (Incapacitated Person) is void.

• Any agreement with a bilateral mistake is void.

• Agreements which have unlawful consideration is void.

• Agreement with a unlawful object is void.

• Agreements made without consideration is void.

• Agreement in restraint of marriage of any major person is void (absolute restriction).

• Agreement in restraint of trade is void.(reasonable reason)

• Agreement in restraint