Question

1. What is consideration and what is meant by the term "the exchange of consideration"? What makes a valid offer? Explain the term revocation and counteroffer.

Answer 1

Ans) In contracts, consideration refers to a benefit that each party receives in exchange for what it gives up in contract .It is a important element that should be present in contract in order to make it legally binding on the parties .A contract can become invalid if no consideration in involved .

Exchange in consideration is simply exchange of one thing of value for another.It is one of the element of the must be present for a contract to be enforceable

A valid offer is an expression of desire to enter into contract that is beneficial to both parties involved .For an offer to be valid, it must be clearly communicated ,giving the offeree a chance to accept it or reject it

In contract , a revocation means to decline an offer.It is a type of remedy for buyers when buyer accepts non conforming good from seller. On the other hand counter offer is a response given to an offer .Counteroffer means the original offer is declined and replaced with another .The counteroffer given three options to the offerer : Accept the counteroffer, reject it or make another offer