notes law
CONSIDERATION
Definition
Section 2 (d)
When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise;
In short, consideration means that a promisee must give something in return for the promise. It may consist of a conduct, or a price to be paid in return for the promise made by, or the conduct of, the promisor. The conduct need not necessarily to be of a positive nature. In fact it can also be in the form of an abstinence from doing something.
Example: Aini sold his car to Badrul for RM30,000. The consideration in this case comes in the form of the RM30,000 paid to Aini. The consideration is in monetary value.
South East Asia Insurance Bhd v Nasir Ibrahim [1992] 2 MLJ 355, SC
The Supreme Court in this case held that the essence of consideration is that the promisee has taken upon him some kind of burden or detriment.
Curie v Misa (1875) LR 10 Exch 153. Consideration under common law has been defined to ‘consist in some right, interest, profit or benefit, accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other’
Dunlop Pneumatic Tyre Co Ltd v Selfridge and Co Ltd [1915] AC 847, 57, 89.
It was stated in this case that an act or forbearance of one party or the promise thereof, is the price for which the promise of the other is bought and the promise thus given for value is enforceable.
In a contract, both parties must provide consideration. The promisor by promising to perform the obligation contained in his proposal. While the promisee by promising to do or actually doing what is requested in the proposal.
Types of Consideration
Executory
Executory consideration means consideration that consists of a promise. It is executory when one promise is made in return for another i.e. a promise
Definition
Section 2 (d)
When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise;
In short, consideration means that a promisee must give something in return for the promise. It may consist of a conduct, or a price to be paid in return for the promise made by, or the conduct of, the promisor. The conduct need not necessarily to be of a positive nature. In fact it can also be in the form of an abstinence from doing something.
Example: Aini sold his car to Badrul for RM30,000. The consideration in this case comes in the form of the RM30,000 paid to Aini. The consideration is in monetary value.
South East Asia Insurance Bhd v Nasir Ibrahim [1992] 2 MLJ 355, SC
The Supreme Court in this case held that the essence of consideration is that the promisee has taken upon him some kind of burden or detriment.
Curie v Misa (1875) LR 10 Exch 153. Consideration under common law has been defined to ‘consist in some right, interest, profit or benefit, accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other’
Dunlop Pneumatic Tyre Co Ltd v Selfridge and Co Ltd [1915] AC 847, 57, 89.
It was stated in this case that an act or forbearance of one party or the promise thereof, is the price for which the promise of the other is bought and the promise thus given for value is enforceable.
In a contract, both parties must provide consideration. The promisor by promising to perform the obligation contained in his proposal. While the promisee by promising to do or actually doing what is requested in the proposal.
Types of Consideration
Executory
Executory consideration means consideration that consists of a promise. It is executory when one promise is made in return for another i.e. a promise