In a bilateral contract, the consideration for a promise is a completed act. This means that both parties involved in the contract each provide something of value to the other party.
Consideration is an essential element of any contract. It refers to what each party is giving up or promising to give up in exchange for the other party`s promise. In a bilateral contract, both parties make a promise to each other, and the consideration is the act or promise made by each party.
For example, in a contract for the sale of a car, the consideration for the seller`s promise to transfer ownership of the vehicle to the buyer is the buyer`s promise to pay the agreed-upon purchase price. Both parties are providing something of value to the other party.
In a bilateral contract, the consideration must be a completed act. This means that the act or promise must be fully performed or completed before the other party is required to fulfill their promise. For example, if the consideration in the car sale contract was for the buyer to make weekly payments over a period of time, the seller would not be required to transfer ownership of the car until the buyer had made all of the payments.
It is important to note that consideration does not have to be monetary. It can be anything of value, such as a promise to perform a service or deliver goods. As long as both parties provide something of value to the other, the contract is considered to have valid consideration.
In conclusion, in a bilateral contract, the consideration for a promise is a completed act. This means that both parties must provide something of value to the other, and the act or promise must be fully performed or completed before the other party is required to fulfill their promise. Understanding the concept of consideration is essential in creating a valid and binding contract.