As defined by Sir Frederick Pollock, consideration is an act or forbearance of one party, 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 .
What does the doctrine of valuable consideration mean?
Valuable consideration refers to a consideration that is valid under the law . It is a consideration that either confers a pecuniarly measurable benefit on one party or imposes a pecunarily measurable detriment on the other. Something of value is given or promised by one party for the promise of another.
When was the doctrine of consideration established?
The Doctrine of Consideration —Introduction
It discusses the details of the earliest example of a case involving assumpsit and the doctrine of consideration in 1549 .
What is the role of consideration in contract law?
When forming a contract, consideration is needed in order to make the agreement a formal, valid contract. This is one of the three main requirements besides mutual assent and a valid offer and acceptance. Consideration basically refers to the exchange of items or services of value .
What are two exceptions to the rule requiring consideration?
One exception to the rule requiring consideration is promissory estoppel . In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.
What are the 3 requirements of consideration?
Each party must make a promise, perform an act, or forbear (refrain from doing something) .
Is the doctrine of consideration necessary?
To create a legally enforceable contract, consideration must be present. However, when a contract is made by deed, consideration is not a requirement. ... Traditionally, the doctrine of consideration has been defined as either a detriment to the promisee or a benefit to the promisor .
What are the legal rules regarding consideration?
Legal rules regarding consideration
Consideration must move from the promisee but need not flow to the promisor. Consideration must be sufficient but need not be adequate . Consideration cannot be illusory. Consideration must not be past.
What are the types of consideration?
- Executory or Future Consideration: Executory Consideration, as the name suggests is one which is yet to be performed. ...
- Executed or Present Consideration: Executed consideration, means the one which is concurrently provided when the promise is made.
What is an agreement without consideration?
An agreement without consideration is a bare promise and exnudo pacto non aritio actio, i.e., cannot be held to binding on the parties. Sir Frederick Pollock has defined consideration, “It is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.”
What is the role of consideration?
Consideration must be provided by each party to a contract, and it is a thing, action, or promise that has value to the person receiving said thing, action, or promise . ... a promise to undertake an action, or. a promise to abstain from an action in which a person had a right to engage (also known as forbearance).
What is consideration and its rules?
Consideration Meaning in Law
Consideration is the foundation on which any contract is built . ... Consideration has to move as per the desire of the promisor. Consideration may move from the promisee to another person. Consideration might be in the past, present, or future. Consideration does not need to be adequate.
What is legal sufficient consideration?
Consideration, which must be given in order to make a contract legally binding , is legally sufficient and bargained-for value, given by the promisor in return for the promisee performing or refraining from performing some act which results in a detriment to the promisee and/or a benefit to the promisor.
What is good consideration?
A reason for doing something based on natural affection, generosity, love, or moral duty . This reason is insufficient to judge a commercial contract or promise enforceable as it lacks valid, valuable, and legal basis for the reason.
What are included in consideration?
Enforcing any legal contract requires it to have an element of consideration included in it. In simple words, it is nothing but a price that the promisee agrees to pay to the promisor . Now, this price can be paid as a benefit to the promisor and/or a loss or detriment to the promisee.
What are the 4 types of consideration?
- Executory Consideration or Future Consideration,
- Executed Consideration or Present Consideration, or.
- Past Consideration.
