The reason why contracts require the exchange of an object of value is to distinguish a legal agreement from a generous gift or a promise made by one party to another, none of which is legally enforceable. For example, if your friend mows your lawn without asking for anything in return, it doesn`t count as a contract because you didn`t promise a quid pro quo. If your friend promises to mow your lawn but doesn`t, you can`t sue for damages. An agreement that is reached without consideration is unded, except in one of these cases, such an agreement is a contract. (f) A agrees to sell a horse worth 1,000 to 10 Rs. A has freely accepted the agreement. The agreement is a contract despite the inadequacy of the counterparty. Some types of contracts are only valid in writing, for example. B real estate transactions or contracts of more than 12 months. These laws vary by state. Although oral contracts are legal, they can be very difficult to prove in court, it is generally preferable to obtain each contractual agreement in writing.
(g) A agrees to sell a horse worth 1,000 to 10 Rs. A disputes that his consent to the agreement was disclosed. The courts have developed guidelines to determine whether there is indeed an agreement to help resolve disputes for which this is not clear. First, there must be an offer and acceptance, whether oral or written. In most cases, the party receiving the offer takes the time to review it and often makes a counter-offer. Sometimes the party that made the initial offer can change or withdraw it. All of these scenarios can lead to confusion and a possible dispute. If you accept an offer, do so as soon as possible, as it can be revoked at any time until you accept it. Once you agree, the contract is legally binding and cannot be amended or revoked. Most business contracts meet the requirement to take into account the promises exchanged.
The promised work is also considered a consideration. If the benefits are provided voluntarily, without the project`s wishes or by any means other than at the request, the promisor agrees to pay the person who provided its services. In such cases, the commitment does not need consideration to support them, and the case falls under section 25 of the act; Sindha Shri Ganpatsingji v. Abraham aka Vazir Mahomed Akuji, (1895) 20 Bom 755.