BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Consideration can be given by conferring the benefit or by incurring a detriment. Consideration never consists of a change in a party’s legal position as a result of the contract. Generally, what the parties give and get as consideration need to be of equal economic value. A promise must be binding to be consideration.

Detailed explanation-2: -Types: Consideration could be a promise, performance, forbearance, or property with legal value, but the economic benefit is not required.

Detailed explanation-3: -It should be noted that whilst the consideration must move from the promisee, it need not move to the promisor. The promisee may suffer some detriment at the request of the promisor which may confer no benefit on the promisor, for example, giving up a job.

Detailed explanation-4: -The three requirements of consideration are: (1) each party must give an act, forbearance, or promise to the other; (2) each party must trade what he or she contributes to the transaction for the other party’s contribution; and (3) what is traded must have value in the eyes of the law.