Consideration

Tags

law

"The price one pays for another promise." - Pollock

"A valuable consideration, in the sense of the 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"
Currie v Misa (1875)

Basically what one party intends to do for the other in exchange for the promise of some service or object. I sell you my watch for $10,000, you promise to pay me that sum in exchange for my watch.

A one sided promise which is not supported by consideration (in the part of the other party) is called a gift.

Gotchas

"Past consideration is no consideration"

• Performance of an existing public duty (eg. being a witness in a trial) is generally not consideration.
• Performance of an existing contractual duty is generally not consideration. For example if you're hired to crew a ship and in the middle of the voyage you demand more moneys or you shirk that responsibility, you aren't legally entitled to such wages even if your boss agrees because you've already agreed to crew the ship for the previous wage.

[see page 7, contracts be deed].