Contract: Consideration
Consideration
Define: Consideration means that each party must put something of value into the contract, it must be real and be of some value, even if it is only of small value. Consideration is needed in every contract for it to be valid and legally binding and it must move from the promisee.
Chappel v Nestle: Held chocolate bar wrappers had some value and could qualify as valid consideration to the contract.
White v Bluett: Held a promise is too intangible and not valid consideration, the defendant had to pay the debt.
Executory Consideration: The exchange of promises to carry out acts or pass property at a later stage. If this promise is broken there has been a breach of contract.
Executed Consideration: The promise to give consideration after one party has executed their part of the contract. There are no contractual obligations until the other party has performed their part.
Past Consideration: This is where the consideration that you intend to put into the contract has already taken place. This is not good consideration, the courts will not enforce this contract. Unless the consideration is implied at the time of making the contract, the courts will not enforce the contract.
ReMcArdle: Held the consideration to pay for alterations that had already taken place was past consideration as it was done after the work was completed, this is not valid.
Lampleigh v Braithwaite: Held althouth the consideration to pay took place after, this could be consideration as payment was implied at the time that the contract was made.
Define: Consideration means that each party must put something of value into the contract, it must be real and be of some value, even if it is only of small value. Consideration is needed in every contract for it to be valid and legally binding and it must move from the promisee.
Chappel v Nestle: Held chocolate bar wrappers had some value and could qualify as valid consideration to the contract.
White v Bluett: Held a promise is too intangible and not valid consideration, the defendant had to pay the debt.
Executory Consideration: The exchange of promises to carry out acts or pass property at a later stage. If this promise is broken there has been a breach of contract.
Executed Consideration: The promise to give consideration after one party has executed their part of the contract. There are no contractual obligations until the other party has performed their part.
Past Consideration: This is where the consideration that you intend to put into the contract has already taken place. This is not good consideration, the courts will not enforce this contract. Unless the consideration is implied at the time of making the contract, the courts will not enforce the contract.
ReMcArdle: Held the consideration to pay for alterations that had already taken place was past consideration as it was done after the work was completed, this is not valid.
Lampleigh v Braithwaite: Held althouth the consideration to pay took place after, this could be consideration as payment was implied at the time that the contract was made.
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