2. Consideration 16/10/18
As well as offer and acceptance a contract also needs consideration (value, benefit)
Consideration: What is given in return
Contract Intention:
In commercial agreements the law presumes the parties did intend to create legal relations
In domestic/social agreements (between family members) it is presumed that the parties
didn’t intend to create legal relations Balfour v Balfour
In the Janice and Deborah Case study there is no contract as it is a domestic agreement and
if Janice was a professional gardener then It might have been different.
A contract cannot be recognised if there is no consideration on both sides
Legal Definition of Consideration: A valuable consideration, in the sense of law, may consist
either in 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
Consideration doesn’t mean the exchange has to be fair eg: doesn’t matter what price is
paid for something but it must be sufficient
Chappell & Co LTD v Nestle Co. LTD 1960
Nestle promised to give a record to people who sent in 3 chocolate wrappers
Nestle received sufficient benefit as sales grew
Past Consideration and the bargain element
“The price for which the promise of the other is bought, and the promise thus given for the
value is enforceable”
Coombe v Coombe 1951
Wife promised not to sue for maintenance
The husband promised his wife some money
However, he didn’t promise to give his wife money in return for not suing him, so it
wasn’t considered consideration
Past consideration is not consideration in the eyes of the law, no bargain
Unexpressed Bargain cases= seem like past consideration but they are not the same
Some act is requested but there is no discussed payment/return but there is an
implication that payment is going to be made
Re Casey’s Patents 1892 (Good for unexpected bargain)
Lampleigh v Braithwait 1615
As well as offer and acceptance a contract also needs consideration (value, benefit)
Consideration: What is given in return
Contract Intention:
In commercial agreements the law presumes the parties did intend to create legal relations
In domestic/social agreements (between family members) it is presumed that the parties
didn’t intend to create legal relations Balfour v Balfour
In the Janice and Deborah Case study there is no contract as it is a domestic agreement and
if Janice was a professional gardener then It might have been different.
A contract cannot be recognised if there is no consideration on both sides
Legal Definition of Consideration: A valuable consideration, in the sense of law, may consist
either in 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
Consideration doesn’t mean the exchange has to be fair eg: doesn’t matter what price is
paid for something but it must be sufficient
Chappell & Co LTD v Nestle Co. LTD 1960
Nestle promised to give a record to people who sent in 3 chocolate wrappers
Nestle received sufficient benefit as sales grew
Past Consideration and the bargain element
“The price for which the promise of the other is bought, and the promise thus given for the
value is enforceable”
Coombe v Coombe 1951
Wife promised not to sue for maintenance
The husband promised his wife some money
However, he didn’t promise to give his wife money in return for not suing him, so it
wasn’t considered consideration
Past consideration is not consideration in the eyes of the law, no bargain
Unexpressed Bargain cases= seem like past consideration but they are not the same
Some act is requested but there is no discussed payment/return but there is an
implication that payment is going to be made
Re Casey’s Patents 1892 (Good for unexpected bargain)
Lampleigh v Braithwait 1615
