Consideration is what the promisor (the person who makes promises) asks for and receives as a prize for the promise. The promisor is the person who makes the promise, and the promise is the person to whom the promise is made. The consideration consists of something to which the promiser is not otherwise entitled. There is no need to use the word consideration in a contract. The consideration is the price paid for the promise. If you think about consideration, think about legal value versus economic value. While economic value (e.g. B money) is the most common form of counterparty, the counterparty must not contain money. In 1974, pitchers Andy Messersmith of the Los Angeles Dodgers and Dave McNally of the Baltimore Orioles played the entire season without new contracts. Both pitchers received their previous year`s salary (Messersmith received a slight increase), but both had refused to sign their contracts.
At the end of the season, they declared that they were free agents because the reserve clause in the last contract they signed lasted only one year. The owners of the club argued that the clause could be extended unilaterally (by one party, here the owners) year after year. Messer-Smith and McNally took their cases to a panel of referees, and the panel decided that the reserve clause was actually an opt-in clause: it gave teams an extra year of option to sign a player to a new contract. Without a new contract, the player was a free agent and could market his service to other professional teams. If a party relies on another party`s statement on the content of the agreement, the contract may be cancelled in two circumstances: (i) The party had the right to rely on the other party`s statement; and (ii) the statement was fraudulent. The motivated party should not be a lawyer, but can be any person who regularly deals with the agreement and who, therefore, has a greater knowledge of the content than the other person. Once the parties, the duration of the agreement and the purpose are defined, it is important to describe the rights, obligations and responsibilities of each party. This may include compensation, but as a general rule, compensation has its own paragraph to clarify. A problem may arise with regard to the legal capacity of a minor who signs a contract. Sports such as gymnastics, swimming and tennis often have contractual problems concerning minors. To complete this element, the signature of a parent or legal guardian may be required. Although minors may enter into contractual agreements, minors have the possibility to cancel such contracts after their choice.
However, in the event of cancellation of the contract, the other party must normally be in the same situation as before the conclusion of the contract or, at the very least, not be in a less favourable position. In the event of a dispute over the interpretation of a contract, the courts try to enforce the intention of the contracting parties. The intent that is implemented is what a reasonable person would think the parties intend to do. Sometimes the provisions of a treaty are contradictory. In such a situation, a court will try to reconcile the provisions and eliminate the conflict. However, if this is not possible, the Court will find that there is no contract. For example, John enters into a contract to sell 100 hectares of land to Joe. A paragraph of the contract states that the purchase price is $100,000. .