BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Consideration is the bargained-for exchange of a “legal detriment” between the contracting parties.

Detailed explanation-2: -Benefit-Detriment 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.

Detailed explanation-3: -An example of legal detriment is when, in exchange for a promise of $5, 000 by the offeror, the offeree agrees (promises) to stop smoking. Although the presence of consideration in an agreement is essential, courts do not usually question whether the consideration received by each party is sufficient or even fair.

Detailed explanation-4: -Consideration-Something of value was promised in exchange for the specified action or nonaction. This can take the form of a significant expenditure of money or effort, a promise to perform some service, an agreement not to do something, or reliance on the promise.