Assertion:Every contract must be supported by a consideration.Reason:A...
Understanding Contracts and Consideration
In legal terms, a contract is an agreement between parties that creates mutual obligations enforceable by law. One of the fundamental principles of contract law is the necessity of consideration.
Assertion: Every Contract Must Be Supported by Consideration
- Consideration refers to something of value that is exchanged between the parties involved in a contract.
- It can be money, services, goods, or a promise to act or refrain from acting.
- Without consideration, a contract is generally not enforceable, as it lacks the necessary element to establish a legal obligation.
Reason: A Contract Without Consideration is Void
- A contract that lacks consideration is considered void, meaning it has no legal effect.
- This principle ensures that both parties have a stake in the agreement, which promotes fairness and prevents one-sided contracts.
- Courts typically do not enforce agreements that are purely gratuitous (i.e., without consideration).
Conclusion: Relationship Between Assertion and Reason
- Both the assertion and the reason are indeed correct.
- The assertion states a fundamental requirement for contracts, while the reason explains why that requirement exists.
- Thus, the reason provides a valid explanation for the assertion, confirming that consideration is essential for the validity of a contract.
In summary, the relationship between the assertion and the reason illustrates the legal principle that consideration is crucial for any enforceable contract, making option 'A' the correct answer.