Consideration Essay Example | Topics and Well Written Essays - 1000 words

Consideration - Essay Example The extant practice of the courts is to reject a transaction even if there is consideration for the promise; if it is illegal in nature. Furthermore, it has become accepted practice to refuse enforcement of a promise, for the reason that it had not been the objective of the promisor to create any legal association by that promise. As such, consideration is no longer perceived to be a concise term that indicates the presence or absence of justification for enforcing a promise2. Albeit, consensus demands unconditional acceptance of an offer, consideration is also required, if a valid contract is to come into existence. Consideration is related to various legal concepts and provisions. A mere inclusion of consideration in the contract is insufficient to make it valid. Consideration should be either in a monetary form or in a form that can be estimated monetarily. A promise that lacks consideration is not capable of being legally enforced3. In general, the provision of goods or services constitutes the consideration on account of one of the parties to the contract. The other party pays money for these goods or services. Agency law terms such financial consideration as commission. Such consideration is known as price in sale of goods; receipt of wages or salary by employees in employment contracts; freight in the carriage of goods; and premiums in insurance contracts4. As such, persons, who are under a legal obligation to perform some duty, need not be provided with consideration, in order to perform the same. This is due to the reason that they are legally bound to complete the duty. Thus, anyone who is under a legal obligation to do something cannot make a good consideration by merely completing it. Performing a duty beyond a person’s legal obligation can constitute good consideration. This principle was established in