Consideration in Contract Law

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Consideration in Contract Law

One of the main aspects that make an agreement legally binding is consideration. In overview, consideration comprises the object or thing that a party surrenders to another party in order to fulfill the agreement. Nonetheless, in order for this facet to exist, a valuable object or thing must be provided or promised. Hence, in return, the other party needs to perform what he or she promised. Aside from this, consideration can also subsist in the event where the facet is viewed as a gain to the promisor and a detriment to the promise. Hence, in an instance where a person promises to pay or reimburse another individual for carrying out a particular task, consideration becomes evident. As such, the individual who made the promise has enforced a contract in which he or she is required to pay the other person if he or she completed the requested obligation.

In the case between Sarah and Jake, there is null evidence of consideration or a legally binding contract between the two parties. Accordingly, Jake assisted his neighbor, Sarah, in extinguishing the fire that was burning her house. At this point, no promise had been made by Sarah to Jake regarding the assistance he provided. In addition, Jake volunteered to engage in the action, which further dispels the legitimacy of the case. However, the promise to pay Jake after saving the house can be perceived as more of a gift, than a consideration. In this respect, Sarah promised to pay Jake $3000 as gratitude for his involvement in stopping the fire. Therefore, Jake is incapable of enforceable this promise. This is because promises based on gifts comprise non-obligatory promises under the legal nature of contracts. Hence, there is no violation of any contract since none exists.

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