Agreements That Lack Consideration

Nevertheless, unilateral contracts are exceptions to the rule of reciprocity of counterparty and can be implemented. Most contracts contain one or two lines that indicate that a valid and sufficient consideration is the basis of the contract. However, the mere mention of something in the treaty does not prove the existence of a valid consideration. Similarly, consideration will not be invalidated if it is not mentioned in the contract. No For example, Ryan only has the right to terminate his contract to purchase computer programs from Intel or resign if he gives sixty days` written notice to Intel. This contract contains a valid consideration. If Ryan had the right to resign at any time and for any reason, then his promise would be illusory and the contract would not be enforceable. This is another scenario of an apparent derogation from reciprocity. Since the obligation to apply the best efforts is implicit and enforceable, both parties are bound by the agreement and the consideration is reciprocal. If there is no consideration in a contract, the contract becomes void and the courts may refuse the application of the contract.

Sometimes a contract may lack consideration, even if it superficially seems that the parties are exchanging something valuable. This is only an apparent exception to the rule of reciprocity. Since there is a termination requirement or other requirement, the party is bound by the right of withdrawal to the contract. . . .