Business Law Essay Example for Free

Business Law EssayConsideration is an essential element of a valid compact. The four main ingredient of a contract is the offer, the acceptance, the consideration and the intention to create legal relation. Consideration refers to what one party to an agreement is giving or promising in exchange for what is being presumption or promised by the other contracting party. There are certain rules that govern a valid contract.The issue in the exemplar is whether the agreement was lawfully binding upon Dream aspiration or whether it failed for want of consideration. If the promise merely fulfils an existing contractual duty to the promisor, he does not provide consideration to subvert the buy promisors promise. The baskets were to be delivered by A and a rate was agreed upon between the party. After the first delivery A demanded much money from K before making any further deliveries to W.K unwillingly agreed to pay the extra money and A continued with the delivery. posterior on K refused to pay the extra money to A and A sued K. It was held that A had not given consideration to K to buy Ks promise of extra money. A could not say that making the delivery was the consideration, as A was contractually bound to make these deliveries under the original contract. With the case of Dream Design the consideration will not be sufficient where a contractually duty already exist.The fact is that Parma Steel and Dream Design agreed on a written contract dated October 22, 2009 for the supply of fabricated steel at a cost of $165 per ton for Grade60,000 and $156 per ton for Hard Grade. In this case Parma Steel could not say that making the deliveries was the consideration, as Parma Steel was already contractually bound to make these deliveries under t he original contract. According to Tucker J. there was no consideration for the new agreement.The plaintiff was already obliged to deliver the defendant goods at the pass judgment agreed under the terms of the original a greement. The facts constituted economic duress but the court has to refuse to enforce the new agreement for the increase in the prices or the higher charges as it lacked any fresh consideration from the purchaser, Dream Design. The supplier, Parma Steel claim for the outstanding balance has to be dismissed.