Agreement Requires Considerationadmin
The effect of debt is that a court maintains a contract when no appropriate consideration has ever been awarded because one party has misled the other party into believing that there is consideration. As a result of this misrepresentation, one party entered into the contract, although the other party never intended to enter into an agreement. A is a screenwriter and B runs a film production company. A said to B, “Buy my script.” B says, “What would you say – I`m going to pay you $5,000 so you don`t let anyone produce your film within a year. If I produce your film this year, I give you $50,000 more, and no one else can produce it. If I don`t produce your film this year, you can go. If they argue a posteriori, the question of whether there is a contract will be answered. B had an option contract – he could decide whether he wanted to produce the script or not. B`s thinking was $5,000 down and the possibility was $50,000. A`s reflection were the exclusive rights to the film script for at least a year.
The counterpart is essentially the exchange of something valuable in exchange for the promise or service of the other party. A legal consideration is consideration that results in either a gain for one party or a loss for another party. For example, if B tickets promise to mow his lawn for B`s promise, movie tickets would be the idea of the promise. .