Consideration book

Consideration must be ‘sufficient’ (of some value) but need not be ‘adequate’ (of equal value to the
other party’s consideration

Consideration is a token of a party’s intention to make a legally binding contract as opposed to a

non-binding social arrangement

Consideration may not prove that a bargain is fair or equal but it is evidence of a legally enforceable
contract, as opposed to a mere friendly arrangement never intended to be contractual

Each party must provide consideration, it is for the party wishing to enforce an agreement to show
that he has provided consideration

Consideration must move from the promisee

Both “executed” and “executory” are recognized by the courts

He has conferred some benefit on the other party or that he has incurred some detriment to himself

In many cases, there will be both benefit and detriment, but it is not necessary to show both

In addition to benefit/detriment requirement, it must also be shown that what the seeking to
enforce the contract has done, or promised, is in response to, the other party’s promise; it must be
“the price of the promise”

Consideration must be of some value in the eyes of the law and the meaning to be given to “value”,
which normally requires that the party seeking to enforce the agreement, the “promisee”, must
have given some benefit to the other party or incurred some detriment to himself

Is it beneficial to one party, that the other promises: not to bring a legal action which has no chance
of success? The promisor, in one sense, is not giving anything of value but the other party, the
promisee, is getting the benefit of not having the trouble and expense of a legal action.

Is it beneficial to the other party not to break an enforceable contractual promise? Will a builder
who promises not to stop work be giving consideration for a promise by the other party to pay
more? In practical terms, breaking the contract would be for the other party to bring expensive legal
proceedings which might produce inadequate compensation, ma