BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Consideration is the legal ability to enter a contract. A person may win a lawsuit for fraud even if no loss is suffered. When actual physical force is used to cause another person to enter a contract, the contract is void.

Detailed explanation-2: -Consideration is a promise, performance, or forbearance bargained by a promisor in exchange for their promise. Consideration is the main element of a contract. Without consideration by both parties, a contract cannot be enforceable.

Detailed explanation-3: -A promise that is unenforceable because of uncertainty or absence of commonality, where just one side will undoubtedly perform. Consideration isn’t official if the promise doesn’t make an obligation or force a commitment, for example, with illusory promises.

Detailed explanation-4: -It is a fundamental rule that the action or forbearance must be done at the desire of promisor. If it is not done at the desire of the promisor or done at the desire of a third party, then it will not be a valid consideration.

Detailed explanation-5: -However, there are three invalid reasons for consideration of a business contract. These include when consideration is given as a gift, when consideration is grounded on an illusory promise or when one party is already legally required to perform an action.