Contracts in Business - Essay ExampleConsideration Either of the parties involved in a contract has to receive something valuable for the contract to be sealed. Therefore, in a situation where one promises a friend to give him a car and the giver refuses to eventually give the car to the friend, such a friend cannot go to court and sue him/her for not giving him that car. This is due to the fact that, the receiver of the car was not to give something of value to the giver in return to the favour. Thus, the price that is paid to the promise of the other is simply the consideration. Besides these elements, it is of essence to have a look at one of the most confusing elements of a contract that is often overlooked. That is ‘an invitation to treat’. (Smithies, 2007) Invitation to treat An invitation to treat is usually confused with an offer. This expression, “invitation to treat�, refers to the invitation or call for other persons to make an offer. Thus, some of what are usually perceived as offers is as a matter of fact, invitations to treat.
