explain the term consideration and state the exceptions to the rule no consideration no contract.
Answers
The term consideration is a part of the law of contracts. The exceptions to the rule, no consideration no contract are provided below.
Explanation:
The term consideration is one of the vital elements in the law of contracts. It includes payment and bargaining between two parties. Under law, one consideration or anything given to a person has to be exchanged for another thing or consideration.
No consideration no contract is a vital rule of consideration in which a promise or contract created with no consideration, cannot be accepted as a legal obligation.
Certain exceptions to this rule of consideration, no consideration no contract are:
- A contract which has no consideration is said to be a void contract.
- A promise or an agreement which is established out of affection and love is said to be void.
- Another exception include that a consideration is cannot be made for voluntary services.