Consideration
Consideration
In contract law consideration is concerned with the bargain of the contract. A contract is based on an exchange of promises. Each party to a contract must be both a promisor and a promisee. They must each receive a benefit and each suffer a detriment. This benefit or detriment is referred to as consideration.
Consideration must be something of value in the eyes of the law - (Thomas v Thomas). This excludes promises of love and affection, gaming and betting etc. A one sided promise which is not supported by consideration is a gift. The law does not enforce gifts unless they are made by deed.
Whilst the common law strictly adheres to the requirement of consideration (although in some instances the courts seem to go to some lengths to invent consideration eg Ward v Byham, Williams v Roffey Bros) equity will, in some instances, uphold promises which are not supported by consideration through the doctrine of promissory estoppel.
Rules of consideration
There are various rules governing the law of consideration:
1. The consideration must not be past.
2. The consideration must be sufficient but need not be adequate.
3. The consideration must move from the promisee.
4. An existing public duty will not amount to valid consideration.
5. An existing contractual duty will not amount to valid consideration.
6. Part payment of a debt is not valid consideration for a promise to forego the balance. 1. Consideration must not be past:Re McArdle
Past consideration may be valid where it was proceeded by a request: Lampleigh v Braithwaite
2. Consideration must be sufficient but need not be adequate:
There is no requirement that the consideration must be market value, providing something of value is given eg £1 given in exchange for a house would be valid. The courts are not concerned with whether the parties have made a good or bad bargain:Chappell v Nestle
3. Consideration must move from the promisee
If a person other than the promisee is to provide the
In contract law consideration is concerned with the bargain of the contract. A contract is based on an exchange of promises. Each party to a contract must be both a promisor and a promisee. They must each receive a benefit and each suffer a detriment. This benefit or detriment is referred to as consideration.
Consideration must be something of value in the eyes of the law - (Thomas v Thomas). This excludes promises of love and affection, gaming and betting etc. A one sided promise which is not supported by consideration is a gift. The law does not enforce gifts unless they are made by deed.
Whilst the common law strictly adheres to the requirement of consideration (although in some instances the courts seem to go to some lengths to invent consideration eg Ward v Byham, Williams v Roffey Bros) equity will, in some instances, uphold promises which are not supported by consideration through the doctrine of promissory estoppel.
Rules of consideration
There are various rules governing the law of consideration:
1. The consideration must not be past.
2. The consideration must be sufficient but need not be adequate.
3. The consideration must move from the promisee.
4. An existing public duty will not amount to valid consideration.
5. An existing contractual duty will not amount to valid consideration.
6. Part payment of a debt is not valid consideration for a promise to forego the balance. 1. Consideration must not be past:Re McArdle
Past consideration may be valid where it was proceeded by a request: Lampleigh v Braithwaite
2. Consideration must be sufficient but need not be adequate:
There is no requirement that the consideration must be market value, providing something of value is given eg £1 given in exchange for a house would be valid. The courts are not concerned with whether the parties have made a good or bad bargain:Chappell v Nestle
3. Consideration must move from the promisee
If a person other than the promisee is to provide the