Consideration is something of value exchanged between parties to a contract. A promise to refrain from illegal conduct constitutes valid consideration because it involves giving up a right or undertaking a new obligation. Promises to perform a pre-existing legal duty or to do something legally required are not considered valid consideration.
A contract entered into under duress is considered voidable because one party was coerced or threatened into agreeing to the terms. The affected party has the option to void the contract if they choose. Contracts for illegal purposes are void, not voidable, and a lack of writing or a mistake about a non-material fact does not generally render a contract voidable.
For a contract to be valid, it generally requires an offer, acceptance, and consideration. A written agreement is not always required for a contract to be enforceable, except in certain cases where the Statute of Frauds applies, such as contracts for real estate or contracts that cannot be performed within one year.
Specific performance is an equitable remedy that requires a party to fulfill their contractual obligations as agreed. This remedy is often sought when monetary damages are inadequate, such as in contracts involving unique goods or real estate.
A contract becomes legally binding when there is an offer, acceptance of that offer, and consideration exchanged. Acceptance of the offer, which signifies mutual agreement to the terms, is what legally binds the parties to the contract. Signing the contract is not always necessary unless specified by the Statute of Frauds.
