Consideration key terms
Term Definitii / rulee
What is considerationn It means that promises do not have to take any specifc form or be in writinng but will be enforceable if
there is mutuality in the anreement. Both parties must brinn somethinn to the anreement – beneft and
detriment are required.
Consideration requirement Consideration is required in two circumstances#
1. In forminn a contract – where there is no existinn contract and parties seek to enter a lenally bindinn
anreement.
2. Where parties seek to vary or alter an already existinn contract – law says fresh consideration must be
niven – BUT courts are fexibleg they may use estoppel to enforce an alteration to an existinn contract.
Defnition of consideration “Some rinhtg interestg proft or beneft accruinn to the one partyg or some forbearanceg detrimentg loss or
responsibilityg niveng sufered or undertaken by the other. – Currie v Misa.
Reciprocity concept The idea of reciprocity is essential to the barnain#
Promisor – who promises; whose promise the other party seeks to enforceg
Promisee – recipient of promise; seekinn to enforce promiseg has to show he provided consideration.
Consideration principles 1. Consideration must move from the promisee (recipient)
2. Consideration must be sufcient but need not be adequate
3. Consideration may be executed or executor but not past.
Consideration sub-rules Consideration must not be an existinn oblinationg
Part payment is not nood consideration.
Term Definitii / rulee
What is considerationn It means that promises do not have to take any specifc form or be in writinng but will be enforceable if
there is mutuality in the anreement. Both parties must brinn somethinn to the anreement – beneft and
detriment are required.
Consideration requirement Consideration is required in two circumstances#
1. In forminn a contract – where there is no existinn contract and parties seek to enter a lenally bindinn
anreement.
2. Where parties seek to vary or alter an already existinn contract – law says fresh consideration must be
niven – BUT courts are fexibleg they may use estoppel to enforce an alteration to an existinn contract.
Defnition of consideration “Some rinhtg interestg proft or beneft accruinn to the one partyg or some forbearanceg detrimentg loss or
responsibilityg niveng sufered or undertaken by the other. – Currie v Misa.
Reciprocity concept The idea of reciprocity is essential to the barnain#
Promisor – who promises; whose promise the other party seeks to enforceg
Promisee – recipient of promise; seekinn to enforce promiseg has to show he provided consideration.
Consideration principles 1. Consideration must move from the promisee (recipient)
2. Consideration must be sufcient but need not be adequate
3. Consideration may be executed or executor but not past.
Consideration sub-rules Consideration must not be an existinn oblinationg
Part payment is not nood consideration.
