A contract is generally considered to be an exchange of promises or an agreement between the parties which in due course legally binds the parties; this may be imposed by English law. A contract always refers to the fundamental foundations of contract law, which refer to promises kept between two parties. It is clear that nowadays everyone enters into contracts and does not even think for a moment that they are entering into contracts; these can be formal or informal, oral or written. In English law consideration is one of the three main areas of an enforceable contract. It may be defined as an act, forbearance, or promise made by a single party which constitutes the price for which another party's promise is purchased. In simple terms, the basic understanding of consideration can be seen as a “give and take” tactic between two parties. Occasionally, there may be misunderstandings by individuals/parties in distinguishing between a simple contract and a special contract. From what we understand, it may be a specialty contract; “illustrated with reference to gifts,” as stated by (Richards, 2009). In case one party promises to give another party £50, this is simply seen as a gift, so this is considered unenforceable as a simple contract. This may be justifiable as there is nothing to clearly illustrate this, it is a necessity for a party to give something, in order for them to be able to keep a promise. This is also known as “quid pro quo”, it was similarly illustrated in; Dunlop v Selfridge [1915] AC 847 (HL). The courts of England and Wales recognize that the above must be something of value in order for it to be considered paid. A valuable consideration in the perspective of English principles of consideration La...... middle of paper ......ub, which is also known as one of the most important methodical processes of contract formation. Overall, this can be seen as the essence of a legal contract, the exchange of consideration, which if excluded, will contain nothing more than an unenforceable promise. Works Cited1. Martine, Elizabeth A., Jonathon, Legge. (2006) Oxford Dictionary of Law, 6th edition, Oxford University Press.2. Lampleigh v Braithwaite [1615] EWHC KB J 173. Pao On v Lau Yiu Long [1980] AC 6144. Poole, J. (2008) Contract Law, 9th Ed Oxford. Oxford University Press.5. Roscorla v Thomas [1842] 3 QB 2346. Slapper, G. Kelly, D. (2011) The English Legal System, 12th ed. Routledge.7. Thomas v Thomas [1842] 2 QB 851, 114 ER 3308. Dunlop v Selfridge [1915] AC 847 (HL)9. Richards, P. (2009) Contract Law, 9th edition. Pearson Longmann.