• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The legal meaning of 'consideration'.

Extracts from this document...

Introduction

"The courts have insisted that no contract (other than a contract under seal) can be enforceable in the absence of consideration." Shears & Stephenson [1996] Under English law, for a simple contract to be valid, there must be 'consideration' from the party accepting the offer. The traditional definition comes from the case of Currie v Misa [1875] where Luch LJ states: 'A valuable consideration in the sense of the law may consist either 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.' The legal meaning of 'consideration' is not very different from the everyday use of term. For example, if it was said, "For a small consideration I will..." it is probably an offering to do something for money. However, the consideration need not be monetary. It need not even be a benefit, i.e. ...read more.

Middle

Consideration might be provided if the creditor agrees to accept: > Part-payment on an earlier date than the due date. > Chattel instead of money. > Part-payment in a different place to that originally specified. Also a promise to accept a smaller sum in full satisfaction will be binding on a creditor where the part-payment is made by a third party on condition that the debtor is released from the obligation to pay the full amount5. A further exception to the rule is to be found in the equitable doctrine of promissory estoppel. This is the name given to the equitable doctrine which has as its principal source the obiter dicta of Denning LJ in Central London Property Trust Ltd v High Trees House Ltd [1947]. The principle is that if someone makes a promise, which another person acts on, the promisor is stopped, or estopped, from going back on the promise, even though the other person did not provide consideration. ...read more.

Conclusion

* It must be inequitable for the promisor to go back on his promise and revert to his strict legal rights6. Furthermore, it must be said on the promissory estoppel doctrine is that it cannot be used to found a cause of action; that is, it may not be used in legal proceedings brought to force someone to uphold a promise. It can only be used to prevent someone going back on their promise and insisting on enforcement of their strict right7. It is to be used as a shield, not a sword. Denning LJ states on this matter: '...that principle does not create new causes of action where none existed before...' Thus there is, in the name of equity, a doctrine which makes certain promises enforceable despite the absence of consideration. 1 Dunlop v Selfridge [1915] 2 Tweddle v Atkinson [1861] 3 Chappell & Co v Nestle [1960] 4 Stilk v Myrick [1809] 5 Hirachand Punamchand v Temple [1911] 6 D & C Builders v Rees [1965] 7 Coombe v Coombe [1951] Contract Law Assignment 3 Access to Law Mohammed Abdullah ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Law of Contract section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Law of Contract essays

  1. Marked by a teacher

    "The requirement of consideration is an unnecessary complication in the formation of contracts."

    4 star(s)

    payment of the whole and the subsequent case of Re: Selectmore had also suggested as much. An exception to the doctrine of consideration comes in the form of estoppels such as estoppels by representation or known as common law estoppels, promissory estoppels and proprietary estoppels.

  2. Marked by a teacher

    Contract Law - Offer And Acceptance

    3 star(s)

    Archital Luxfer Ltd 1993 T built industrial units and subcontracted the windows to L. The work was done and paid for. T then claimed damages from L because of defects in the windows. L argued that even though there had been letters, phone calls and meetings between the parties, there was no matching offer and acceptance and so no contract.

  1. e-commerce legal issues

    The traditional offline rules apply to online contracts, that is to say, e-commerce is applied by the same principle as traditional paper-based transaction3, and only the way in which they apply may be different. Under common law, an offer is a statement by one party of a willingness to enter

  2. Four ways in which a contract may be discharged.

    If the claimant can purchase replacement goods or performance, specific performance will not be offered. Cohen v Roche [1927] 1 KB 169. An auctioneer failed to deliver a set of Hepplewhite chairs sold to the buyer. The buyer was successful in claiming that there was a breach of contract, but the court refused to order specific performance.

  1. I have been asked to advise a client on considering contracting with a building ...

    The case of Doyle V White City Stadium 1935 is an example of this; "Doyle, who was a minor, obtained a licence to compete as a professional boxer. Under his licence he agreed to be bound by rules which could withhold his prize money if he was disqualified for a foul blow (as in fact happened).

  2. LAW OF CONTRACT. LAW 103. THE CONTENT OF THE CONTRACT.

    If nay, his claim sounds in damages only." Diplock LJ. "In what event will a party be relieved of his undertaking to do that which he has agreed to do but has not yet done? The contract itself may expressly define some of these events. If it does not it is for the court to determine whether it has this effect or not.

  1. Law of Contract - Promissory Estoppel

    Furthermore, under Foakes v Beer, it can be stated that if Kajai is under an existing obligation to pay a larger amount, he cannot at law discharge that liability by paying a smaller amount. Thus, applying the general rule, Kajai cannot have been said to have provided consideration for the

  2. In advising Bennys position of the interest over the said property (the flat), it ...

    Admittedly, there are certain kinds of financial contributions to qualify Benny's beneficial interest as: (1) direct contribution towards the purchase price of property8 and (2) less direct contribution9. As if Benny wishes to establish presumption to resulting trust, he ought to take the views to the followings: - 1.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work