Agreement Upon Consideration

For consideration to be a good consideration, it must be of a certain value, even if it has a minimum value. It is not necessary for the economic counterpart to live up to the initial promise. The nominal consideration is sufficient in return for a contract, the courts will not measure the relevance of the consideration, since it is up to the parties to decide the subjective value of any promise. Contract underperformance is one of the two things needed to make a treaty legally binding and enforceable. Consideration is the benefit received by all parties to the contractual agreement. It involves trading a performance against a performance. These legally enforceable commitments may be made in writing or orally. In any event, the conclusion of a legally binding treaty requires two fundamental elements, quid pro quo and mutual acceptance. This chapter discusses issues and problems related to the review. In the next chapter, we will discuss the reciprocal points of view. As a general rule, a court will not consider the relevance of the consideration for the contract, unless it is “grossly insufficient to shock the conscience of the court.” [3] The mere fact that an agreed price does not correspond to the market value or that a party receives a bad deal is not sufficient to cancel a contract. The legal definition of counterparty is based on the concept of “negotiated exchange”.

This means that both parties get something they have accepted, usually something of value for something of value. .