The requirement or non-requirement of consideration is something which forms the basis of an agency and a contractual relationship. This is because in case of a agency relationship, there is no requirement of consideration (Clarkson, Miller & Cross, 2016). However, in case of contractual relationship, consideration is required/mandatory. In case of contractual relationship, the physical performance of any one of the parties to the contract cannot be controlled by either of the parties even after the formation of the contract stating that there would be something done for a particular contractual party by another party.