Write a 5 page essay on Business and the Law.For example in Carlill v Carbolic Smoke Ball C. [1893] is was held that there would be consideration even if the promise suffered an inconvenience by using

Write a 5 page essay on Business and the Law.

For example in Carlill v Carbolic Smoke Ball C. [1893] is was held that there would be consideration even if the promise suffered an inconvenience by using the advertised smoke ball under the directions of the promisor and the promisor had not incurred a benefit. As Selwyn LJ noted, “any act” which either confers upon the promisor a benefit or “any detriment, or inconvenience” to the promise will amount to consideration.2 Essentially, consideration is an act or exchange of promises or bargains from which a quid pro quo outcome can be inferred.3 There is no consideration where there is a mere gratuitous promise with no exchange of promises.4 Giving the broad meaning of consideration in the law of contract, a collateral contract satisfies the requirement for consideration. It was held in De Lassalle v Guildford [1901] that there is consideration when the promisor promises to enter into the principal contract.5 It therefore follows that not only do collateral contracts require consideration, they by necessity encompass consideration.