Recent changes have made the doctrine of consideration obsolete. Discuss.

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Contract Law: Assignment #2                                        Rakesh Gangwani

Q.43 p.8 (2000)                                                        DIL0306016 (sect H)

“Recent changes have made the doctrine of consideration obsolete.” Discuss.

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Consideration has travelled a long and treacherous path since Justice Lush’s benefit/detriment definition in Currie v Misa. The doctrine has undergone rigorous changes over the years and today is defined by most as “the price that one pays for the promise of the other” as stated by Lord Dunnadin in Dunlop Pneumatic Tyre v Sefridge; later reaffirmed in Chappel v Nestle.

Despite the various consensuses on the matter however, the true definition, and often, the very necessity of the doctrine still is and almost always has been in continued contention. It is for this reason that consideration has gathered a considerable amount of criticism of from judges and scholars alike over the years.

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One of the most notable of these critics was Professor Atiya who suggested that judges merely applied consideration on a subjective basis where they felt it is right to do so for whatever reason; a view that was heavily scorned upon by Professor Treitel who stood firmly behind the benefit/detriment definition which he professed to have a certain flexibility about it which allowed judges to expand or contract the doctrine’s scope accordingly in order to affirm or repudiate a contract depending on the facts of a case. These views were later followed by a refinement of the definition of the ...

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