Consideration – Under the Common Law regulations, there can be no binding agreement without consideration, which was defined as “some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other”. Common law did not want to allow gratuitous offers, those made without anything offered in exchange (such as gifts), to be given the protection of contract law. So the the criteria of consideration has been added. Consideration is not required in contracts made in the European (Continental) Law systems and many common law jurisdictions have already adopted laws which remove consideration as a prerequisite of a valid agreement.

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