How Do You Define Consideration?

What are the features of consideration?

The court in the case of Currie v Misa defined consideration as a right, interest, profit, detriment, loss, or responsibility.

Its main characteristic is that the promissor must give a promise of something that is of value, and the promisee must give something of value in exchange..

What are the six types of consideration?

Me too!1.An offer made by the offerer.2.An acceptance of the offer by the offeree.Consideration in the form of money or a promise to do or not do something.Mutuality between parties to carry out the promises of the contract.Capacity of both parties in mind and age.Legality of terms and conditions.

What are the two elements of consideration?

Elements of consideration 1. A performance or a return promise must be bargained for. 2. A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.

What are synonyms for consideration?

Synonyms of considerationaccount,advisement,debate,deliberation,reflection,study,thought.

What is the cause of a contract?

Cause Cause is an essential element of a contract which is more proximate purpose that the contracting parties have in view at the time of entering into the contract. It is also called causa which is the immediate or direct reason. … The illegality of one’s motive does not render the contract void.

What does a valid contract require?

The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. … Contracts are promises that the law will enforce.

What are the types of consideration?

Kinds of ConsiderationExecutory Consideration or Future Consideration,Executed Consideration or Present Consideration, or.Past Consideration.

What are the 3 requirements of consideration?

Each party must make a promise, perform an act, or forbear (refrain from doing something).

What is the purpose of consideration?

Consideration is—with some exceptions—a required element of a contract. It is the bargained-for giving up of something of legal value for something in return. It serves the purposes of making formal the intention to contract and reducing rash promise making.

What are the rules of consideration?

The following are the Rules governing consideration in a contract.Consideration must move at the desire of the promisor.Consideration may Move front the Promisee or any other Person.Consideration may be Past, Present or Future.Consideration need not be Adequate.Consideration must not be Illusory but should be Real.

What do you consider a valid contract?

Most contracts only need to contain two elements to be legally valid: All parties must be in agreement (after an offer has been made by one party and accepted by the other). Something of value must be exchanged — such as cash, services, or goods (or a promise to exchange such an item) — for something else of value.

What are two exceptions to the rule requiring consideration?

One exception to the rule requiring consideration is promissory estoppel. In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.

What do you mean by consideration?

n. 1) payment or money. 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. … In a contract, one consideration (thing given) is exchanged for another consideration.

Something bargained for and received by a promisor from a promisee. Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.

What is cause or consideration?

Cause or consideration is the essential reason which moves the parties to enter into a contract. This is the “why of the contract” which dictates the nature of the contract. … For gratuitous contracts, the cause is the liberality or generosity of a party.