An agreement made without consideration is called a void contract. This means that the contract is not enforceable by law and has no legal value. Consideration is an essential element of a contract, as it refers to the exchange of something of value between the parties entering into the agreement.
Consideration can be in the form of money, goods, services, or even a promise. For instance, if A agrees to sell a car to B for $10,000, then the consideration for the agreement is the money exchanged between A and B. Similarly, if A agrees to mow B`s lawn, then the consideration is A`s services, and B`s payment would be implied in the agreement.
However, if A promised to give B the car as a gift, and B promised nothing in return, that agreement would be considered unenforceable because there is no consideration. In the case of a void contract, there is no valid or legal agreement between the parties. This means that neither party can sue the other for breach of contract.
It is also important to note that consideration must be both legal and sufficient. Legal consideration means that the exchange of value between the parties must not be in violation of any law. For example, if A promises to sell B illegal drugs in exchange for money, that contract would be void as it is against the law.
Sufficient consideration means that the exchange of value must be equal and fair. If A promises to sell B a car for $10,000, but the car is worth $20,000, that contract would not be enforceable as the consideration is not sufficient.
In conclusion, an agreement made without consideration is called a void contract. Consideration is an essential element of a contract, and it refers to the exchange of something of value between the parties entering into the agreement. Both legal and sufficient consideration is required for a contract to be valid and enforceable by law.