The meaning and importance of consideration
Consideration can be defined as a particular thing that is valuable handled out by one party to another, in exchange for the pledges of the latter. The consideration is either handled out for the doing of an act or before the actual act is performed. However, the definition of consideration varies from one legal user to another. Another definition is, “some right, interest, profit or benefit to one party (forbearance) either given or undertaken by the other party.
The importance of consideration
Consideration is very important in that the legal courts don’t put into effect a uncomplicated contract if it is not propped up by efficient consideration and therefore it is very vital in a large number of contracts.
Importance of a Legal Capacity for a Binding Agreement
-To guide the parties in relation to legal aspects of binding agreements.
-To ensure that the agreement is fair.
-To avoid any of them going against the law leading them to court.
-So that the legal capacity keeps records for future reference
-Legal capacity can also act as a witness or clarify issues in case of a disagreement.
-To ensure that the rights of each party is respected.