Doctrine of Consideration
What is the role played in contract law by the doctrine of consideration
1. Controversies and challenges of consideration.
For a contract promise to be enforceable, that promise must normally be supported by consideration. Any contractual promise must be supported by consideration unless an exception applies.
A promise will be supported by consideration if it’s given as part of a bargain or exchange rather than a gift. Second, the promiser or 3rd party should receive some act forbearance or return promise.
If the promise is doing something or promising to do something different from what he was already obligated to do and that something is being given in exchange for the promisor’s promise then, the promisors promise is >supported by consideration”.
Where consideration matters. Modification of existing contract to one party’s sole benefit, settlement of claim, partial payment of debt. Where rwo parties are strangers who meet for the first time and “make a deal” (exchange promises), there’s probably no problem of lack-of-consideration.
“Discount Price” yes
Where a transaction is a mixtures or bargain and gift, consideration repuirement is met. Unsupported – unenforceable, supported - enforceable
Promises to make gifts are not supported by consideration and therefore non-binding. Therefore, if a person backs out of a gift propsiton, the promise is not supported by consideration.
Consideration is an essential ingredient for the excitence of a contract. L Wilberforce, The Euromedon.
Professor Treitel - English law recognizes consideration. He agrees that courts invents consideration in certain circumstances.
Professor Atiyah states consideration is any good reason for enforcing a promice. Consideratin is merely evidence that both parties take the agreement seriously.
The doctrine of consideration can therefore be seen as a set of rules, which play the principal role in the decision by the courts as to which agreements or
1. Controversies and challenges of consideration.
For a contract promise to be enforceable, that promise must normally be supported by consideration. Any contractual promise must be supported by consideration unless an exception applies.
A promise will be supported by consideration if it’s given as part of a bargain or exchange rather than a gift. Second, the promiser or 3rd party should receive some act forbearance or return promise.
If the promise is doing something or promising to do something different from what he was already obligated to do and that something is being given in exchange for the promisor’s promise then, the promisors promise is >supported by consideration”.
Where consideration matters. Modification of existing contract to one party’s sole benefit, settlement of claim, partial payment of debt. Where rwo parties are strangers who meet for the first time and “make a deal” (exchange promises), there’s probably no problem of lack-of-consideration.
“Discount Price” yes
Where a transaction is a mixtures or bargain and gift, consideration repuirement is met. Unsupported – unenforceable, supported - enforceable
Promises to make gifts are not supported by consideration and therefore non-binding. Therefore, if a person backs out of a gift propsiton, the promise is not supported by consideration.
Consideration is an essential ingredient for the excitence of a contract. L Wilberforce, The Euromedon.
Professor Treitel - English law recognizes consideration. He agrees that courts invents consideration in certain circumstances.
Professor Atiyah states consideration is any good reason for enforcing a promice. Consideratin is merely evidence that both parties take the agreement seriously.
The doctrine of consideration can therefore be seen as a set of rules, which play the principal role in the decision by the courts as to which agreements or