Consideration in contract law pdf

The implied condition in a contract ( consideration given), and some rough notion that purchaser is entitled to receive adequate value for money. Whether a theoretical or a pragmatic analysis is adopte the Common Law ’s insistence on consideration as a pre-requisite for contract formation requires reform. What is sufficient consideration in contract law? What does consideration mean in a contract?

Does a contract need consideration? Why is consideration needed in a contract? In common law , a promise is not, as a general rule, binding as a contract unless it is supported by consideration (or it is made as a deed). The price is usually money – but can be anything that has value.

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.

It is one of the six elements that must be present for a contract to be enforceable. Secondly, in a bilateral contract the consideration for a promise is a counter-promise, and in a unilateral contract con­ sideration is the performance of the act specified by the promisor. All rights reserved.

Consideration in contract law is simply the exchange of one thing of value for another. Studying the law of contract As already state this guide is not a textbook nor a substitute for reading the primary materials that comprise the law of contract (i.e. cases and statutory materials). The special word “ consideration ” in contract law refers to something that has value in the eyes of the law.

In the legal system, the term consideration in contract law refers to something of value given to someone in return for goods, services, or some other promise. A valid contract must include consideration for every party involved. In simple terms, consideration is the basic reason a party enters into a legal contract. A and B are the only parties to the contract whereas X is only a stranger to the contract.

The court held that the son in agreeing to ‘stop complaining’ had provided no detriment. Agreeing not to complain did not have a value in the eyes of the law = no consideration = no agreement. Keeping it Real (life)!

Essentially, consideration is simply what you give up in the deal for what you get out of the deal. The idea of consideration is vital to contract law because, in order for a contract to be enforceable, there must be “mutuality of obligation. Executory consideration : This type of consideration is formed when there has been an exchange of promises between parties otherwise known as a bilateral contract. Executed consideration : This type of consideration is found in unilateral contract where one party makes a promise in exchange for an act or conduct to be performed by another party. Contract law revision.

For the most part, consideration is essential to make a contract binding in law. It must not be taken as a substitute for reading the texts, cases, statutes and journals. Has the power either to accept or to reject the offer.

Makes an offer to the offerree Offeree ELEMENTS OF A VALID CONTRACT 1. Intention to create legal intention 5. Scotland and most civil law countries do not require consideration. Where a contract is being formed for the first time three requirements must be satisfied. Understanding contract law past consideration is a topic that anyone entering into any form of contract needs to understand.

Whether you are a business owner or an individual dealing with a relative, knowing when a contract can be enforced and at what point is very important to prevent either of the parties from getting burned in the process.