Agreement A Contract With Consideration
Description
How to fill out Woodworking Services Contract - Self-Employed?
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FAQ
The three essential elements of the consideration are: For both the parties of the contract, there must be something which is worth bargaining. The contract must include a bargain for the term of exchange. Mutual exchange must be done between the parties. ... The exchange done in the contract must be something of value.
Consideration must be given at the time of the agreement, but it does not include previous acts. For example, in the case of Re McArdle (1951), previous work was not treated as consideration for the contract for a future arrangement.
For example, if you enter into a contract with your neighbor wherein he agrees not to sue you for the damage you caused to his property, and in return, you agree to pay him a sum of $800, then the amount of $800 is the consideration your neighbor gets, whereas his promise to not sue you is the consideration you get ...
Say, for example, that your neighbor admires your bicycle. You know you are moving soon, so you offer (an "offer" is an element of a contract) to sell it to her for $100 (consideration). She accepts your offer (acceptance is also an element of a contract), but can't pay you until she goes to the bank.
For a contract to be legal, there must be ?mutuality of obligation?, which means both parties must meet their obligations. And consideration is the commitment the parties make to each other. This means both parties must be exchanging one thing of value for another.