BANKING AFFAIRS

Detailed explanation-1: -Section 10 of the Indian Contract Act, 1872, describes lawful consideration as one of the essential ingredients to constitute a valid contract which means that an agreement without consideration is void. This is doctrine of consideration.

Detailed explanation-2: -Valid consideration is anything that has some sort of value under the law. In practice, a business contract needs to include an exchange of valuable things to be legally binding. This is critical when creating new contracts in order to ensure they are enforceable in law.

Detailed explanation-3: -A valid consideration always has some extent of money or a promise that must come from both sides of the parties who are entering a contract agreement. So, the valid consideration must seek to be under a realm where the promise is from both sides of the parties to the contract.

Detailed explanation-4: -The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.

Detailed explanation-5: -Executory (Future) Consideration. Executed (Present) Consideration. Past Consideration. Conditional Consideration.