MBAL-105: Legal Aspects in Business – Unit 5

MBAL-105: Legal Aspects in Business – Unit 5

Objectives: describe the meaning of consideration; explain lawful consideration and its significance in relation to the validity of a contract; state the exceptions to the rule ‘no consideration, no contract’ and describe the agreements which are considered opposed to public policy.

Materials:
The relevant material is available here.

Questions:

1. Define consideration. Disuss various types of consideration.
2. Do you agree with the view ‘No consideration, No contract’?
3. In what cases a contract without consideration is not valid?
4. Discuss the rule that a stranger to a contract cannot sue on the contract. Are there any exceptions to this rule.
5. Under what circumstances is the object or consideration of a contract deemed unlawful. Illustrate.