Consideration

• Consideration


  A valid contract because law requires a bargain not a gift
• Consideration and contract are required by law
• Insignificant payments can be considered as acceptable consideration
• A bad bargain can still be valid if consideration is present
• The doctrine of privity states that only a party to the contract can sue or be sued under a contract and thereby enforce any rights granted by the contract
• The Unfair Contract Terms Act 1977 was proposed by the Law Commission to address economic duress
• Economic duress occurs when one party to a contract puts the other party under pressure of threats
• Economic duress provides a defence to a demand of extra consideration that was not originally agreed
• The principle of freedom of contract is upheld