Asked by: Cristino Payneasked in category: General Last Updated: 13th March, 2020
What is mutual consideration in a contract?
Similarly one may ask, what is a consideration in a contract?
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.
Additionally, what is good consideration in contract law? Consideration. Related Content. Payment, in any form, under a contract; any value given at the counterparty's request can be good consideration, including any action, inaction, or a promise.
Accordingly, what is an example of consideration in a contract?
Types of Consideration Consideration in a contract is the exchange of anything of value by each party. Most often, services or goods are exchanged or promised in a contract, though consideration may be whatever the parties agree to. Examples include: Money. Promise to refrain from acting.
Why Is consideration essential in a contract?
When forming a contract, consideration is needed in order to make the agreement a formal, valid contract. This is one of the three main requirements besides mutual assent and a valid offer and acceptance. Consideration is needed so that both parties incur some sort of burden or obligation in the agreement.