Contract Law - Consideration

"A valuable consideration in the sense of the law, may consist either in some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.

"Consideration is really just an evidential principle, and that commercial practice can get around any supposed necessity of consideration".

Example divorce case from 1951 in which a contract was held to be unenforceable due to an absence of consideration.

"A peppercorn does not cease to be good consideration if it is established that the promisee does not like pepper and will throw away the corn. " - Lord Sumervell.

A subjective approach should be taken to determine benefit, this case involved the weighing of boilers.

‘it is no consideration to refrain from a course of action which it was never intended to pursue’.

A motive is different to consideration.

Consideration must not be impossible, in this case a deed for a past date.

A promise to give up a legal claim that you have a reasonable belief in and is valid and non frivolous, is good consideration for a contract.

If it is unclear what the consideration is it is not valid, in this case stopping complaining about something.

Consideration of a past, separate act is not valid, in this case bringing up a child.

Warranty made after sale of horse is invalid as no enforceable contract as to warranty due to absence of consideration.

Past consideration may be valid if someone would only do it in expectation of a reward, in this case the defendant instructed the claimant to ride to get a King's pardon.

An act done before the giving of a promise to confer some benefit can sometimes be consideration for the promise if: 1) it was at the promisor's request, 2) renumeration was expected by both parties, 3) it would have been legally enforceable if promised in advance.

Performance of a legally imposed duty is not valid consideration. e.g Being subpoenaed to appear as a witness

Performance over and above the existing legal duty may count as valid consideration.

The same consideration can be good consideration for two contracts, as in this shipping case.

Pre-existing duties cannot constitute consideration between the contracting parties in a new agreement, sailors already obliged to sail ship home.`

Gaining a pratical benefit or obviating a disbenefit on top of an existing contract may qualify as valid consideration, in this case involving contractors.

Part payment of a debt cannot satisfy the debt however payment by other means may be able to settle it.