consideration basics Flashcards
does English law recognise the concept of a gratuitous contract as a promise
no, promises can generate enforceable contractual rights only if supported by consideration- thus consideration is capable of making gratuitous promises legally enforceable.
what does currie v misra define consideration as
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 responsibly given, suffered or undertaken by the other.’
broadly speaking what must there be
a benefit or a detrmiment
How is consideration given in a bilateral contract
Each set of promises is given in return for the other, where promises made by A and B, B’s promises viewed as consideration given in return for A’s promise will generally benefit A and produce a detriment for B, although either will suffice. Each set of promises is consideration for the other.
How is consideration given in a unilateral contract case
A reward is promised for a stipulated act. Perfomance is commenced in return for the promise and constitutes a detriment to the party performing- commencement of performance is consideration for the promise.
Case where there was no consideration in a unilateral contract case
Combe V Combe: (divorced, H promises an allowance of £100. In reliance on this promise, W forbore from applying to the court for a maintenance order. H failed to pay, W sued. CA held there was no contract. Although refraining from legal action can constitute consideration, on the facts W forbearance was as a result of the promise and not in return for it. There was no baragin of W not seeking a court order in return for the promise. All that happened, there was a promise made and W trusted him to keep it, there was no consideration.
