08 November 2015
Consideration is only an essential element for formation of a Valid contract.
A contract is a legally binding or valid agreement between two parties. The law will consider a contract to be valid if the agreement contains all of the following elements:
# offer and acceptance; # an intention between the parties to create binding relations; # consideration to be paid for the promise made; # legal capacity of the parties to act; # genuine consent of the parties; and # legality of the agreement.
An agreement that lacks one or more of the elements listed above is not a valid contract.
11 December 2015
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). In a contract, one consideration (thing given) is exchanged for another consideration.
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