Consideration is the price paid for the promisor's promise and it also could be something or some actions carried out by the promisee in exchange of promises. In the case of simple contract, the present of valuable consideration is an essential element to form the enforceable contract. In other words, simple contracts must contain a bargain. There are two parties involved in consideration, one is promisee who is the person receiving or the recipient of the promise and the other one is promisor who is the person making the promise. There are some rules which are established in the development of consideration. Nowadays, these rules are becoming the important elements of consideration. These rules are include
*consideration is essential in every simple contract, this means simple contracts are not valid unless consideration flow from the promise.
* it should be present or future but not past. A promise or act that occurred before the contract was made.
A party who makes a promise in response to something done in the past done not receive valid consideration.
*consideration must be definite. Consideration must be real and capable of being clearly identified.
*Consideration must supplied by both parties. each party to a contract must provide consideration to the other.
*consideration must move from promisee
*consideration must be adequate
*consideration must have a legally recognized value. It means consideration mst not involve conduct that is prohibited by statute or common law.
Consideration is an important aspect of contract, there many different situation of consideration in reality cases.
One special situation of consideration of promises is pay less money of amount which is owned by debtor to creditor. In this situation, debtor own creditor a payment of debt, the correct way of discharging the debtor is pay the entire amount to creditor before deadline,