BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The rule is that consideration must be sufficient but need not be adequate. What this means is that the law requires the parties to have entered into a bargain where each side has provided something of value that the courts can see.

Detailed explanation-2: -Consideration is only present when the parties mean to have an exchange. However, consideration must be sufficient but need not be adequate. It means consideration must be having some values, whether it appropriates in order to meet the return of the agreement.

Detailed explanation-3: -( consideration need not be adequate but must be sufficient) This means that the mutual exchange must involve a fair price in comparison to the promise that is being made.

Detailed explanation-4: -Consideration isn’t official if the promise doesn’t make an obligation or force a commitment, for example, with illusory promises.

Detailed explanation-5: -1) Consideration must be sufficient, but need not be adequate. ⇒ Forbearance (where you refrain from taking someone to court) is seen to be sufficient consideration in some circumstances: See the case of Alliance Bank v Broom (1864), for example.