One of the three basic requirements for a contract to be enforceable is consideration, which usually means a promise to pay money, but could mean that another valuable item would be provided instead (as in a trade, for example, of one valuable car for another valuable car).
In federal procurement contracts, the courts have said that to be a valid contract, the transaction “must show a mutual intent to contract including an offer, an acceptance and consideration.” If there’s no consideration, is it a contract? The answer is simple: it’s a “nudum pactum” and there is no valid contract.
A nudum pactum is defined as a “bare agreement,” a promise or undertaking without any consideration for it. Where there is a nudum pactum, the contract is neither valid nor enforceable.
Keep reading this article at: http://federalnewsradio.com/commentary/2015/11/nudum-pactum-mistake/