consideration
Sign in to saveConsideration is a concept of English common law and is a necessity for simple contracts but not for special contracts (contracts by deed). The concept has been adopted by other common law jurisdictions. It is commonly referred to as one of the six or seven elements of a contract.
~20 min read
Article
14 sectionsContents
- As an element or a prerequisite
- Legal rules regarding consideration
- History and comparative law
- Monetary value of consideration
- Pre-existing legal duties
- Bundled terms
- Past consideration
- Option contracts and conditional consideration
- Bonus clause
- In settlements
- Criticism
- See also
- Notes
- References
Consideration is a concept of English common law and is a necessity for simple contracts but not for special contracts (contracts by deed). The concept has been adopted by other common law jurisdictions. It is commonly referred to as one of the six or seven elements of a contract.
The court in Currie v Misa declared consideration to be a "Right, Interest, Profit, Benefit, or Forbearance, Detriment, Loss, Responsibility". Thus, consideration is a promise of something of value given by a promissor in exchange for something of value given by a promisee; and typically the thing of value is goods, money, or an act. Forbearance to act, such as an adult promising to refrain from smoking, is enforceable if one is thereby surrendering a legal right.