Consideration
Two people exchanging goods of equal value.Consideration is the fourth element of a contract. one of the critical things that distinguishes and agreement in a social from an agreement that is legally binding is that some gain or benefit passes to the person making the promise.
Rules:
Example:
A simple example of consideration in a case such as the purchase of a CD the purchaser surrenders money in return for possession of the CD. Each party has given up something of value in return for something of value.
This gain or benefit is known as consideration and must be present in all simple contracts if they are to be valid.
(Greene, 2013)
Dunton Vs. Dunton (1892)
The following case is a more complex example of consideration.
Rules:
- Consideration must exist in every simple contract.
- Consideration must be illegal or unlawful
- It must be definite
- It must be possible to carry out
- It must be provided by the person who wishes to enforce a contract.
- Consideration offered now in return for past performance is not good consideration.
Example:
A simple example of consideration in a case such as the purchase of a CD the purchaser surrenders money in return for possession of the CD. Each party has given up something of value in return for something of value.
This gain or benefit is known as consideration and must be present in all simple contracts if they are to be valid.
(Greene, 2013)
Dunton Vs. Dunton (1892)
The following case is a more complex example of consideration.