Types of consideration in contract law uk

Consideration in Contract Law - InBrief. What types of consideration are in contract law? What is the legal term for consideration? Is consideration a valid legal contract? There are two types of consideration: executed and executory.

Where consideration has been given (executed), consideration has already been carried out.

What amounts to consideration in contract law? Executed consideration is where consideration has already been carried out. 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.

The most popular form of consideration is the payment of money.

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 valuable consideration, in the sense of the law, may consist either in some right, interest, profit, or benefit accruing to the one party, or some forbearance , detriment, loss, or responsibility, given, suffere or undertaken by the other. Past consideration.

When something is done or suffered before the date of the agreement, at the desire of the promisor, it is called ‘past considera-tion. In English law consideration May be present or future, but not past. The rules of consideration in contract law. Let us start off by just listing the rules. Rule 1: consideration should be sufficient but does not need to be adequate.

Rule 2: consideration must (at least) move from the promisee. Rule 3: consideration must not be past. The concept of consideration has been adopted by other common law jurisdictions, including the US. Mutual promises constitute consideration for each other.

If only one party offers consideration , the agreement is a bare promise and is unenforceable. Thus, consideration is the price for which the promise of other is bought. It is the price for which the promise of the other is bought (law of contract, pg 60).

Traditionally, the doctrine of consideration has been defined as either a detriment to the promisee or a benefit to the promisor.

For a contract to be enforceable, it has to include consideration from every individual or business who is party to the contract. The consideration is a benefit that all parties will received or expect to receive from the deal. For instance, you get a soda at the convenience store and they get your money.

Contract law is the body of law that applies to the rights and obligations of the contractual parties under a contract. It governs the relationship, validity and interpretation of an agreement between two or more persons (individuals, companies or other organisations) regarding the sale of goods, the provision of services or exchange of interests or ownership.