BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -If the court determines a lack of consideration in the contract’s agreement, the contract is invalid, and the terms are unenforceable.

Detailed explanation-2: -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-3: -A contract without consideration is void because it is not legally enforceable. “Consideration” means that each party must provide something of value to the other party as designated by the contract terms.

Detailed explanation-4: -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-5: -In general, the effect of the termination of a contract is to discharge the parties from their unperformed obligations under the contract. However, termination does not affect liabilities of the parties for breaches of the contract that occurred prior to the contract being terminated.