What is bargain theory of consideration?

This theory states that a promise or performance that is bargained in exchange for a promise is a consideration for the promise. This theory underlies all bilateral contracts. Bargain theory of consideration was developed from classical contract theory which constitutes a wholly executory contract.

What is a bargain in law?

The term “bargain” appears in two specific legal contexts: The first is contract law, where a bargain is defined as a voluntary agreement between two parties in exchange for consideration . Consideration, here, can be money, goods, services, or a promise to do something.

What is the difference between benefit-detriment theory and bargain theory?

Bargain theory has largely replaced benefit-detriment theory in modern contract theory, but judges often cite both and may use both models in their decisions. These theories usually overlap; in standard contracts, such as a contract to buy a car, there will be both an objective benefit and detriment.