Essay | Importance Of Consideration To Consumers & People Of Australia

CONSIDERATION

Table of Contents
Introduction......................................................................................................................................3
Explain the role of consideration in formation of a contract...........................................................3
Discuss what is meant by the keywords in the assignment topic....................................................4
Explain the development of the relevant law with regards to the assignment topic........................5
Make appropriate observations on whether there are any existing problems or issues...................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

Introduction
Consideration is regarded to be the value given by both the parties to make the contract in terms
of the agreement they mutually agreed upon. The consideration, in other words, is the exchange
value of the mutual understanding upon the parties of the agreement. There are five elements to a
contract that make the legal relation and the capacity of the company strong. The objective of the
consideration in the formation of law is to make the law efficient enough to deal with the crisis
situation in the country. The origin of consideration can be traced back to be origin of Australian
law which were enforce in terms of the validation of the bargain that used to be one of the
critical issues in the then society. One of the most of eminent theories describing the roe of
consideration includes bargain theory which was one of ten most common activities in
Australian history of contract. The Australian contract sufficed that the exchange of the contract
in terms of the agreement between the two parties agreed upon a mutual value for sharing of any
product required eventually by both. The theory of bargaining, as supported by Australian
contract law is regarded to be the exchange price of the consideration, mutually accepted by both
parties for the validation of the agreement. The essay below describes the importance of the
consideration in the day to day life of the consumers and the people in the society of Australia.
The study aims at justifying the statement that consideration must be considered to be sufficient
rather than adequate.
Explain the role of consideration in formation of a contract
Consideration in contract is important to achieve in order to function evidently in the society.
The very first function is to avoid fraud that might otherwise take place if promises and bonds
are created legal manner. II function is to make the agreement in daily life easier and feasible for
the common people in the society. Consideration helps in the wearing of the fact that the
agreement made to another person does not go in a fraud manner it is widely seen in day to day
life that quotes and legal places are filled with cases such as fraud in the society1. The prime
objective of consideration in the formation of contract is to maintain this entity of the law in the
eyes of the society member according to Sir Francis Pollock he acts of forbiddance is he only
and prime objective of the consideration in the formation of contract. The consideration of
contract act helps in the proper satisfaction of the people in the society.
1 Dalen D and Moen E, 'Ownership And Cost-Sharing Contracts' (2012) 51 Australian Economic Papers