Law of contract - SS2 Commerce Past Questions and Answers - page 1

To enforce promises made between parties

Consideration

An expression of willingness to enter into a contract

Capacity

It establishes the mutual agreement of the parties

Consideration refers to something of value exchanged between parties, such as money, goods, or services. It is a fundamental element of a contract and signifies the benefit or detriment each party receives in the agreement.

An example could be a contract for the sale of illegal drugs. Such a contract is considered void because the purpose is illegal and against public policy.