BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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.

Detailed explanation-2: -PROMISE: An engagement by which the promisor contracts towards another to perform or do something to the advantage of the latter. When a promise is reduced to the form of a written agreement under seal, it is called a covenant.

Detailed explanation-3: -The something in return promise to perform an act or refrain from performing an act, or it could be the actual “doing” or “refraining from doing” an act. The underlying principle is that the promise is being enforced because the promisee paid a consideration or price for that promise.

Detailed explanation-4: -There are four types of mutual consideration: quid pro quo, tit for tat, win-win, and lose-lose. Each type has its own pros and cons. Quid pro quo is the most common type of mutual consideration. It is when each party involved gets something in return for what they give.

Detailed explanation-5: -A bilateral contract is a contract in which both parties exchange promises to perform. One party’s promise serves as consideration for the promise of the other. As a result, each party is an obligor on that party’s own promise and an obligee on the other’s promise. ( compare: unilateral contract)