International business law Coursework Example | Topics and Well Written Essays - 1750 words

International business law - Coursework Example In relation to international business law, law of contract serves as an important element for ensuring fair international trade and transactions. Law of contract is an essential element that aid in protecting the interest of parties involved in an agreement. In this regard, ‘Offer’, ‘Agreement’, ‘Acceptance’, ‘Consideration’ and ‘Intention to create legal relations’ are ascertained to be important element related to law of contract. Correspondingly, this paper intends to discuss about the concept consideration and critically evaluates the two statements regarding consideration (Jenks, 2012). Definition and Explanation of Consideration In relation to the law of contract, the term consideration is understood as a very important element which is required while making a contract. In its simple meaning, the doctrine of consideration is regarded as the principle way of deciding whether an agreement that has resulted from the exchange of offer and acceptance should be legally enforceable. The doctrine of consideration may include a promise for the performance of a particular act and may also consist of statements to refrain from the performance of certain tasks or acts that someone has the legal authority to do. The doctrine of consideration is looked as detriment for the party performing his part of agreement and benefit for the other party. The doctrine of consideration on the other hand, can also be understood as the mode of connection which brings together different parties under a single contract (Jenks, 2012; Wilshart, 2012; Taylor & Taylor, 2007). (a) Consideration Must Be Sufficient but Does Not Have to Be Adequate The above statement i.e. consideration must be sufficient but does not have to be adequate lays broad importance in the overall context of law of contract. It is essential that consideration must be sufficient. This means that what is being put forwarded in the agreement by the parties entering into it must be something which can be recognized as legally capable of constituting consideration. This aspect provides the maximum amount of weightage because consideration is the root to establishment of long term and short term business relationship. Also, the consideration gives birth to the establishment of contract between multiple parties. As consideration is an essential part of a contract, it derives primary importance in the overall context of law and when the contract gets breached in any case it also accounts for punishment. Taking this aspect into concern, it can be stated that the consideration must be sufficient. Therefore, before the establishment of any contract, the primary importance needs to be delivered in making a consideration sufficient. In addition, consideration plays a very important role for the formation of business in the international landscape as well. This factor lays primary importance because in order to form international business chann els, there are various factors that are needed to be taken into concern and consideration between the parties in a contract being the most important (Charman, 2013; Goode & Goode, 2011). If a consideration is sufficient then it will also lead to start up of a contract in an ideal manner. It will lead to proper functioning of a contract in a legalized form. All these aspects combined will lead