English Commercial Law - Consideration
In common law jurisdictions, consideration is often necessary for a contract to. You perform action X, and in exchange, I will perform action Y. The quid pro quo need not be equal; in English law, there is the idea of the 2.3.5 "peppercorn," which is a nearly worthless consideration but sufficient to establish a contract. According to English law, it is up to the parties to strike a contract and determine whether they are getting a decent deal. Therefore, a court won't question if what either party to the contract is receiving from it is sufficient. In civil law systems, consideration does not exist. However, a contract must have a "cause" in many legal systems, such as French law, in order to exist. A party must enter into a contract with a reason or goal in mind, and his expectations must be reasonable. A cause, however, is not required in some civil systems, such as Germany, and a contract is legal as long as the parties desire it to be.
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