Consideration

In contract law consideration is concerned with the bargain of the contract. A contract is based on an exchange of promises. Each party to a contract must be both a promisor and a promisee. They must each receive a benefit and each suffer a detriment. This benefit or detriment is referred to as consideration. Consideration must be something of value in the eyes of the law - (Thomas v Thomas) (1842) 2 QB 851. This excludes promises of love and affection, gaming and betting etc. A one sided promise which is not supported by consideration is a gift. The law does not enforce gifts unless they are made by deed.

Whether or not a promise that is part of an agreement can be enforced depends on, among other things, whether the promisee has given consideration for the promise. Consideration is perhaps best understood as an act or promise of an act which is the price paid for the other's promise. The common law will only enforce a promise for which a price is paid. Dunlop Pneumatic Tyre Co v Selfridge & Co

People make many different kinds of promises: promises to perform certain services, to pay certain sums, and to appear at certain places at certain times. While some promises are more straightforward than others, there is no set requirement with respect to what a promise has to look like or how it needs to be worded in order for a court to consider it valid . When promissory estoppel is at play, courts often have to look hard at the facts to discern whether a promise was actually ever made, and if so, what its terms were.

Rules of consideration
There are various rules governing the law of consideration: 1. The consideration must not be past.

2. The consideration must be sufficient but need not be adequate.

3. The consideration must move from the promisee.

4. An existing public duty will not amount to valid consideration.

5. An existing contractual duty will not amount to valid consideration.

6. Part payment of a debt is not valid consideration for a promise to forego the balance.

1. Consideration must not be past:

Re McArdle (1951) Ch 669

(home improvement by sister in law )

Past consideration may be valid where it was proceeded by a request:

Lampleigh v Braithwaite [1615] EWHC KB J17

(pardon from king for death penalty )

2. Consideration must be sufficient but need not be adequate:

There is no requirement that the consideration must be market value, providing something of value is given eg 1 given in exchange for a house would be valid. The courts are not concerned with whether the parties have made a good or bad bargain: Chappell v Nestle [1960] ( wrapper case )

3. Consideration must move from the promisee

If a person other than the promisee is to provide the consideration, the promisee can not enforce the agreement:

Tweddle v Atkinson [1861]

4. An existing public duty will not amount to valid consideration

Where a party has a public duty to act, this can not be used as consideration for a new promise:

Promissory estoppel . Reliance is essential primarily because the doctrine is built around the idea of fairness. Requirements of promissory estoppel: A pre-existing contract or legal obligation which is then modified There must be a clear an unambiguous promise Change of position It must be inequitable to allow the promisor to go back on their promise is an equitable doctrine which in some instances can stop a person going back on a promise which is not supported by consideration. Promissory estoppel was developed by an obiter statement by Denning J (as he then was) in Central London Property Trust Ltd v High Trees Ltd [1947] Low rent in war time ) . The House of Lords affirmed the existence ofpromissory estoppel in contract law in Tool Metal Manufacturing v Tungsten [1955]

Use of the promissory estoppel doctrine is limited to cases where it is necessary to prevent an injustice. This means it is used less often than if it were applied to simply do justice a nuanced but significant difference. Judges and courts do not usually intervene in personal affairs to make them just, but they can help restore balance when someone has been harmed.