0
Consideration is what each party gives up. There are two elements of consideration, legal detriment and inducement. Legal detriment in the sense of the law may consist either of some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other. The other element of consideration is inducement. This most often takes the form of the "if-then structure." IF you will paint my house, THEN I will pay you $500.
There are many ways in which consideration can be "bad".
A gift is not normally consideration. It lacks the legal detriment to one of the parties. What would they be giving up in exchange for the gift?
Conditional gifts may also be "bad" consideration - If the consideration does not induce the other. I will give you my car if you will stay alive for another 5 years. Staying alive for five years did not require that party to do anything he wouldn't have normally of done. Therefore he has not given up something in exchange for the car.
Past consideration is typically not going to count. If it is something you've done in the past, how can it induce this contract?
There are many more elements of consideration, these are just enough to scratch the surface. Also, even with bad consideration, there may be means of enforcing the contract.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is lawful consideration and object?
An object of a contract that is permitted by law and possible of performance
What are the type of consideration under tanzania law?
there are only two types which are executory consideration and executed consideration as provided under section 2(1)(d) law of contract act(cap 345 r.e 2002).
What is the significance of contractual consideration?
the significance of consideration in law of contract is that it sets a value of exchange to the agreement between the parties
When can you prepare a contract?
you can prepare a contract if and only if there is a valid offer and an acceptance supported by a consideration. in proerty law you prepare a contract at the completion of offer acceptance, investigation of title and exchange of sale price.
What is preexisting contractual duty?
A preexisting contractual duty is a common law rule of contract. It is wherein a party's offer of a performance already required under an existing contract is an insufficient consideration for modification of the contract.
What does consideration mean in contract law?
A simplistic definition of 'consideration' is: something of value given by one party, in return for the performing of a contract, or for the promise to perform a contract, by the other party. (The full definition and analysis could run for several pages.)
Do you agree with Lord Dening's view on consideration?
Lord Denning's view on consideration was that the courts should not be too strict in requiring consideration in contract law to uphold agreements that are fair and just. Some legal scholars agree with this perspective, while others argue that consideration is an essential element in forming a valid contract. Ultimately, the interpretation of consideration may vary depending on the specific jurisdiction and context.
What is a consideration of a contract?
Consideration is the Promise or Performance that flows between the parties to a contract. It is also called legal detriment.
Identify the term contract?
A contract is defined in law as an agreement between two parties with an offer, acceptance, and consideration.
Can an option contract be created without consideration?
No, in order to create a legally binding option contract, consideration is required. Consideration is what each party gives or promises to give in exchange for the other party's promise. It is a key element in forming a contract and provides the basis for a valid agreement.
Can you sued for breach of contract if there is no consideration?
No. It is not legally possible to sue on a contract that does not exist because there was no formation thereto. However, there are alternative contract-law theories that impute substitutes for consideration. The most common is the legal theory of promissory estoppel. Where it is proven on its elements, it can facilitate a recovery as to the expected benefit of the purported bargain, even without a valid contract having been formed.
What are the advantages and disadvantages of past consideration?
The advantages of consideration in a valid contract
