![]() For example, promises that are purely gifts are not considered enforceable because the personal satisfaction the grantor of the promise may receive from the act of generosity is normally not considered sufficient detriment to constitute adequate consideration.Under the benefit-detriment theory, an adequate consideration exists only when a promise made to the benefit of the promisor or to the detriment of the promisee, which reasonably and fairly induces the promisor to make a promise for something else for the promisee.There are two different theories or definitions of consideration: Bargain Theory of Consideration and Benefit-Detriment theory of consideration. To be legally binding as a contract, a promise must be exchanged for adequate consideration. Elements - Consideration and Mutual AssentĬontracts arise when a duty comes into existence, because of a promise made by one of the parties. If a promise is breached, the law provides remedies to the harmed party, often in the form of monetary damages, or in limited circumstances, in the form of specific performance of the promise made. ![]() Background:Ĭontracts are promises that the law will enforce. Contract law is generally governed by state common law, and while general overall contract law is common throughout the country, some specific court interpretations of a particular element of the contract may vary between the states. ![]() Possible remedies for breach of contract include general damages, consequential damages, reliance damages, and specific performance. In some states, elements of consideration can be satisfied by a valid substitute. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance adequate consideration capacity and legality. A contract is an agreement between parties, creating mutual obligations that are enforceable by law.
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