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Introduction to Consideration

The document discusses the doctrine of consideration in contract law, emphasizing its role as proof of a contract's existence rather than a mere promise. It outlines the evolution of the doctrine, highlighting the need for 'something of value' exchanged between parties to enforce agreements legally. Additionally, it explains how English courts interpret consideration and its significance in distinguishing between binding contracts and gratuitous promises.

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INTRODUCTIONTOTHE DOCTRINE OF CONSIDERATION PREETI KANA SIKDER ASSISTANT PROFESSOR DEPARTMENT OF LAW & JUSTICE JAHANGIRNAGAR UNIVERSITY
THE DOCTRINE OF CONSIDERATION • Consideration developed as the ‘proof’ that a contract existed rather than a merely gratuitous promise. • The rules of contract seek to differentiate between agreements where there is something to be gained by both parties, as is the case in a contract, and agreements which are purely gratuitous, as are gifts.
THE DOCTRINE OF CONSIDERATION • By the seventeenth century, in the case of agreements other than for land, the courts would demand evidence of the ‘proof’ that a bargain in fact existed. • The giving of ‘consideration’ by both sides became the traditional method of ensuring that agreements other than related to transfer of land were contractual.
THE DOCTRINE OF CONSIDERATION •It was the quid pro quo , the proof that a bargain in fact existed. •If no consideration could be found then the agreement could not be enforced.
CONSIDERATION ISTHE EVIDENCE OFTHE INTENTION OFTHE PARTIES TO BE BOUND
C J HARMSON IN ‘THE REFORM OF CONSIDERATION’ (1938) • Consideration, offer and acceptance are an indivisible trinity, facets of one identical notion which is that of bargain. • We can no doubt separate offer, acceptance and consideration for our convenience…but they are logical and interdependent entities abstracted from the one entire reality which is ‘bargain’.
CONSIDERATION IN ENGLISH LAW • The purpose of the requirement of consideration is to put some legal limits on the enforceability of agreements even where they are intended to be legally binding. • English law limits the enforceability of agreements (not in deeds) by reference to a complex and multifarious body of rules known as “the doctrine of consideration.”
TRADITIONAL DEFINITION OF CONSIDERATION The requirement is that ‘something of value’ must be given and consideration is either some detriment to the promisee (in that he may give value) or some benefit to the promisor (in that he may receive value).
“RECIPROCITY” AN INFORMAL GRATUITOUS PROMISE DOES NOT AMOUNTTO CONTRACT
WHAT IS CONSIDERATION? •Classic definition was provided in Currie v Misa (1875) - 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 (The act of abstaining from proceeding against a delinquent debtor; delay in exacting the enforcement of a right), detriment, loss or responsibility given, suffered or undertaken by the other.
INVENTED CONSIDERATION English courts often tend to regard an act or forbearance as the consideration for a promise even though it may not have been the object of the promisor to secure it, or the promisee may not have consciously realized that he was giving what was, in fact, consideration.
INVENTED CONSIDERATION •The courts have also sometimes regarded the possibility of some prejudice to the promisee as a detriment without regard to the question whether it has in fact been suffered. •These practices may be called ‘inventing consideration’
LEGAL DEFINITION • Interpretation Clause: Section 2 d) When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.
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