BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Usually, the performance of a duty already owed under the contract to the promisor is not good consideration.

Detailed explanation-2: -According to the law, performance of an existing duty is cannot constitute a consideration. Now seems that the performance of an existing duty may constitute consideration for a new promise, in the circumstances where no duress or fraud is found and where the practical benefits are to the promisor.

Detailed explanation-3: -A promise to do what one already has a legal duty to do is not legally sufficient consideration under most circumstances. Promises made with consideration based on events that have already taken place are fully enforceable.

Detailed explanation-4: -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.

Detailed explanation-5: -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.