Fall
12
Consideration
Maisha Farzana Maleque
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the
document.]
[Type the company address]
,Table of Contents
Defining Consideration ......................................................................................... 3
Rules of Consideration .......................................................................................... 3
Requirement of a bargain: Past Consideration..................................................................................... 3
Consideration in return for a promise ........................................................................................................ 3
Past acts: ................................................................................................................................................................... 3
Exceptions: Past acts done at promisor’s request .................................................................................. 4
Consideration must move from the promisee ...................................................................................... 5
Adequacy of consideration ........................................................................................................................... 5
Something of value in the eye of law............................................................................................................ 5
Nominal consideration ....................................................................................................................................... 6
Intangible returns: ............................................................................................................................................... 6
Forbearance to sue............................................................................................................................................... 6
Invented consideration....................................................................................................................................... 7
Performance of existing duty....................................................................................................................... 7
Performance of a duty imposed by law....................................................................................................... 7
Performance of a contractual duty owed to the promisor ................................................................ 8
Performance of a duty imposed by contract with a third party ..................................................... 8
Practical benefit .................................................................................................................................................... 9
Reconciling Williams with Stilk v Myrick ................................................................................................10
Part payment of debt.................................................................................................................................... 10
Part payment of debt and the decision in Williams v Roffey ..........................................................11
Exceptions to the rule in Pinnel’s Case ......................................................................................................11
Promissory Estoppel .................................................................................................................................... 12
The limitations on promissory estoppel ...................................................................................................13
, CONSIDERATION
A promise is not contractually binding unless it is either made in a deed or
supported by some consideration. English law will not enforce a gratuitous
promise.
Offer + Acceptance + Consideration = Legally Enforceable Agreement
Defining Consideration
The definition of consideration arises from case law
Currie v Misa (1875) L.R. 10 Ex. 153
Lush J referred to consideration as:
“A valuable consideration, in the sense of the law, may consist in either
some right, interest, profit or benefit accruing to the one party or some form of
detriment, loss or responsibility given, suffered or undertaken by the other.”
Dunlop v Selfridge [1915] A.C. 847
Lord Dunedin approved Sir Frederick Pollock’s definition of consideration:
“An act of forbearance 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.”
Rules of Consideration
Requirement of a bargain: Past Consideration
Consideration in return for a promise
Combe v Combe [1951] 2 K.B. 215
A husband promised to pay his wife £100 p.a. on their separation.
The husband did not make any of the payments and 6 years later the wife
brought an action to recover the arrears.
She argued that in reliance of his promise she had not applied to the
divorce court for maintenance, and in that sense she has suffered a
detriment.
Court of Appeal:
There was no request, express or implied, by the husband that the wife
should refrain from applying to the court for maintenance.
Therefore no consideration was provided for the husband‟s promise and it
was unenforceable.
Past acts:
Past consideration is some service previously rendered. A promise made after a
contract has been entered into will not be enforceable, as no consideration will
have been provided for the promise.
Eastwood v Kenyon (1840) 113 E.R. 482
The guardian of a young girl raised a loan to educate her and improve
marriage prospects.
After her marriage, her husband promised to pay off the loan.
Court of King’s Bench:
12
Consideration
Maisha Farzana Maleque
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the
document.]
[Type the company address]
,Table of Contents
Defining Consideration ......................................................................................... 3
Rules of Consideration .......................................................................................... 3
Requirement of a bargain: Past Consideration..................................................................................... 3
Consideration in return for a promise ........................................................................................................ 3
Past acts: ................................................................................................................................................................... 3
Exceptions: Past acts done at promisor’s request .................................................................................. 4
Consideration must move from the promisee ...................................................................................... 5
Adequacy of consideration ........................................................................................................................... 5
Something of value in the eye of law............................................................................................................ 5
Nominal consideration ....................................................................................................................................... 6
Intangible returns: ............................................................................................................................................... 6
Forbearance to sue............................................................................................................................................... 6
Invented consideration....................................................................................................................................... 7
Performance of existing duty....................................................................................................................... 7
Performance of a duty imposed by law....................................................................................................... 7
Performance of a contractual duty owed to the promisor ................................................................ 8
Performance of a duty imposed by contract with a third party ..................................................... 8
Practical benefit .................................................................................................................................................... 9
Reconciling Williams with Stilk v Myrick ................................................................................................10
Part payment of debt.................................................................................................................................... 10
Part payment of debt and the decision in Williams v Roffey ..........................................................11
Exceptions to the rule in Pinnel’s Case ......................................................................................................11
Promissory Estoppel .................................................................................................................................... 12
The limitations on promissory estoppel ...................................................................................................13
, CONSIDERATION
A promise is not contractually binding unless it is either made in a deed or
supported by some consideration. English law will not enforce a gratuitous
promise.
Offer + Acceptance + Consideration = Legally Enforceable Agreement
Defining Consideration
The definition of consideration arises from case law
Currie v Misa (1875) L.R. 10 Ex. 153
Lush J referred to consideration as:
“A valuable consideration, in the sense of the law, may consist in either
some right, interest, profit or benefit accruing to the one party or some form of
detriment, loss or responsibility given, suffered or undertaken by the other.”
Dunlop v Selfridge [1915] A.C. 847
Lord Dunedin approved Sir Frederick Pollock’s definition of consideration:
“An act of forbearance 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.”
Rules of Consideration
Requirement of a bargain: Past Consideration
Consideration in return for a promise
Combe v Combe [1951] 2 K.B. 215
A husband promised to pay his wife £100 p.a. on their separation.
The husband did not make any of the payments and 6 years later the wife
brought an action to recover the arrears.
She argued that in reliance of his promise she had not applied to the
divorce court for maintenance, and in that sense she has suffered a
detriment.
Court of Appeal:
There was no request, express or implied, by the husband that the wife
should refrain from applying to the court for maintenance.
Therefore no consideration was provided for the husband‟s promise and it
was unenforceable.
Past acts:
Past consideration is some service previously rendered. A promise made after a
contract has been entered into will not be enforceable, as no consideration will
have been provided for the promise.
Eastwood v Kenyon (1840) 113 E.R. 482
The guardian of a young girl raised a loan to educate her and improve
marriage prospects.
After her marriage, her husband promised to pay off the loan.
Court of King’s Bench:
