Name- TANVIR Ahmed Onif

ID-3687
Batch-54D

1. CONSIDERATION There are two basic rules of consideration:

• Value: Both parties must get something of measurable value from the contract.
• Bargained for Exchange: The two parties must have bargained for whatever was
exchanged.
2. ACT, FORBEARANCE, OR PROMISE The item of value can be either an
act or a forbearance.
 
EXAM Strategy
Question: An aunt saw her eight-year-old nephew enter the room, remarked what
a nice boy he was, and said, “I would like to take care of him now.” She promptly
wrote a note, promising to pay the boy $3,000 upon her death. Her estate refused to
pay. Is it obligated to do so?
Strategy: A contract is enforceable only if the parties have given consideration.
The consideration might be an act or a forbearance. Did the nephew give
consideration?

Result: The nephew gave no consideration. He did not promise

to do anything. He committed no act or forbearance. Without
consideration, there is no enforceable contract. The estate wins.