Where there is an existing contract between two parties and one party,to ensure performance by the other,promises something more,so long as the other party also gives something more,there is a binding contract and the first party must perform the new promise.

Question

Quizplus · Accepted Answer

This is known as the doctrine of consideration, which states that a promise must be supported by consideration (something of value given or promised by both parties) in order to be legally enforceable. Therefore, if one party promises something more in exchange for something more from the other party, there is consideration and a binding contract is formed.

Where There Is an Existing Contract Between Two Parties and One