BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Promises of a gift are not used as a consideration in a contract.

Detailed explanation-2: -Consideration could be a promise, performance, forbearance, or property with legal value, but the economic benefit is not required. A gift or gratuitous promise cannot be a consideration for they have no bargaining. The past performance also cannot be a consideration as there is no exchange.

Detailed explanation-3: -(4) Completed gift [Explanation 1 to Sec. 25] – The rule “No consideration, no contract” does not apply to completed gifts. According to Explanation 1 section 25, nothing in section 25 shall affect the validity, as between the donor and the donee, of any gift actually made.

Detailed explanation-4: -The three requirements of consideration are: (1) each party must give an act, forbearance, or promise to the other; (2) each party must trade what he or she contributes to the transaction for the other party’s contribution; and (3) what is traded must have value in the eyes of the law.

Detailed explanation-5: -To promise to do something that you are already obligated to do by law cannot serve as consideration.