International bussiness law Coursework Example | Topics and Well Written Essays - 1750 words

International bussiness law - Coursework Example With regard to the efficiency along with the adequate significance of a valid contract, the aspect of consideration is often viewed as one of the major attributes which ensures to clearly understand about the conditions accepted by both the contractual parties during an agreement (MacMillan & Stone, 2012). This paper intends to critically define and explain the aspect of ‘consideration’ in relation to the law of a contract. In order to critically understand the major guidelines underneath the aspect, the discussion of this paper would highly focus on critically evaluating the statements regarding consideration that include â€Å"past consideration is not good consideration† along with â€Å"consideration must be sufficient but does not have to be adequate†. (i) Definition and Explanation of Consideration in relation to the Law of Contract In relation to the perspective of contract law, the aspect of consideration is identified as a set of principles that ar e agreed by both the parties while entering into an agreement. With the purpose of enforcing a contract, it is essential for both the party(s) to agree with certain terms along with conditions concerning payment. Therefore, consideration in a contract can further be stated as the commitment of paying the price of a contract by the other party. Consideration may also be recognised as the benefit or interest acquired by one party with loss or liability given by the other party (Field, 2012). Moreover, consideration is also defined as the fundamental prerequisite which denotes certain essential terms along with conditions, to be accepted by both the contractual parties in achieving the predetermined objectives of the contract. Owing to the stated concern, the fundamental law governing the facet of consideration is generally defined as agreed equivalent and inducing causes of the parties, for the purpose of satisfying the value and validity of the contract (Xie, 2010). Therefore, consid eration of a valid contract generally incorporates three major types of obligations that efficiently enable the contractual parties to accomplish their desired objectives. In this regard, the obligations relating to the doctrine of consideration include the following: The obligations associated with a valid and a justified contract law ensure to act independently for smooth progress of the contractual agreement The obligations that are allocated by the third party of the contract and The obligations that exist in a particular contract with an individual, who has created a new promise, for which the persisting obligation is suspected in offering a valid consideration of a contract (MacMillan & Stone, 2012). Roles and Significance of Consideration With reference to the law of contract, consideration ensures to play a decisive role for both the parties in order to achieve a valid contractual agreement. In relation to determine the importance of consideration, it can be affirmed from a broader outlook that ensuring the incorporation of valid conditions in line with the justifiable requirements of a contract is an essential role of consideration. The aspect i.e. consideration