Contract Law Coursework Example | Topics and Well Written Essays - 2250 words

Contract Law - Coursework Example The element of mutual agreement requires parties to agree on the terms of the contract. It stresses that the agreement must have an offer and acceptance. Finally, the element of consideration required for one party to agree to agree to a specific set of terms at an agreed price. The doctrine of consideration is one of the most crucial and controversial issues in the law of contract.1 It is crucial because for a contract to be valid, consideration must be present. In the absence of consideration, a contract is considered to be invalid and not binding to the parties involved in the contract. This is referred to as â€Å"nundum pactum†, that is, a promise made with no supporting agreement. The two main rules of a consideration are that is required to move from the promisee but does not have to move to the promisor, and it does not have to be adequate but needs to be sufficient. The cost-benefit analysis of contracts aims at making sure that parties do not enter into contracts that they will not benefit in one way or another. The doctrine of consideration has over the years developed as seen in the case of Williams v Roffey Bros. and Nicholls(Contractor)Ltd [1991] 1 QB 1.2 In this case, it is clear that little is needed in a contract for consideration to exist. However, even with consideration, not all contracts are fair, and consideration is not sufficient in dealing with these new problems. The doctrine of duress has become crucial in solving complex business relationships especially in monopoly situations. Economic duress is unacceptable uses of economic power aimed at making the victim submit to demand. Its development has affected the doctrine of consideration. Contracts are considered to be an exchange of agreements or promises between parties, which binds them legally. However, the mere fact that there is an agreement does not make a contract legal. The doctrine of consideration is very crucial yet