Class notes
Consideration
- Course
- Institution
Lecture notes including key cases, analysis and theories
[Show more]
Seller
Follow
annamutter
Content preview
2. Consideration 16/10/18As well as offer and acceptance a contract also needs consideration (value, benefit)
Consideration: What is given in return
Contract Intention:
In commercial agreements the law presumes the parties did intend to create legal relations
In domestic/social agreements (between family members) it is presumed that the parties
didn’t intend to create legal relations Balfour v Balfour
In the Janice and Deborah Case study there is no contract as it is a domestic agreement and
if Janice was a professional gardener then It might have been different.
A contract cannot be recognised if there is no consideration on both sides
Legal Definition of Consideration: A valuable consideration, in the sense of law, may consist
either in some right, interest, profit or benefit accruing to the one party, or some
forbearance, detriment, loss or responsibility given, suffered or undertaken by the other
Consideration doesn’t mean the exchange has to be fair eg: doesn’t matter what price is
paid for something but it must be sufficient
Chappell & Co LTD v Nestle Co. LTD 1960
Nestle promised to give a record to people who sent in 3 chocolate wrappers
Nestle received sufficient benefit as sales grew
Past Consideration and the bargain element
“The price for which the promise of the other is bought, and the promise thus given for the
value is enforceable”
Coombe v Coombe 1951
Wife promised not to sue for maintenance
The husband promised his wife some money
However, he didn’t promise to give his wife money in return for not suing him, so it
wasn’t considered consideration
Past consideration is not consideration in the eyes of the law, no bargain
Unexpressed Bargain cases= seem like past consideration but they are not the same
Some act is requested but there is no discussed payment/return but there is an
implication that payment is going to be made
Re Casey’s Patents 1892 (Good for unexpected bargain)
Lampleigh v Braithwait 1615
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller annamutter. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.56. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75619 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now