Consideration in English law
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Consideration is an English common law concept within the law of promiweand is a necessity for simple contracts but not for special contracts by deed. The concept of consideration has been adopted by other common law jurisdictions, including the US. Consideration can be anything of value such as any goods, money, services, or promises of any of thesewhich each party gives as a quid pro quo to support their side of the bargain. Mutual promises constitute consideration for each other.
According to Currie v Misa consideration for a particular promise exists where some rightinterestprofit or benefit accrues or will accrue to the promisor as a direct result of some forbearancedetrimentloss or responsibility that has been given, suffered or undertaken by the promisee. Forbearance to act amounts to consideration only if one is thereby surrendering a legal right. For consideration to be good consideration, it must be of some value, even if it is minimal value. There is no requirement that the consideration be commensurate in economic terms to the original promise.
Nominal consideration will suffice as good consideration for a contract, Courts will not measure the adequacy of the consideration as it is up to the parties to how to login to linksys router without password the subjective worth of each promise.
A peppercorn does not cease to be good consideration if it is established that the promisor does not like pepper and will throw away the corn.
A promise cannot be based upon consideration that was said, given or done before the promise was performed. Something said afterwards, will not count as consideration. For example, if X promises to reward Y for an act that Y had already performed then while the performance of that act is good consideration, for the promise to be rewarded for it is past consideration and therefore not good consideration. In Eastwood v Kenyon the guardian of a young girl raised a loan to educate the girl and to improve her marriage prospects.
After her marriage, her husband promised to pay off the loan. It was held that the guardian could not enforce the promise as taking out the loan to raise and educate the girl was past consideration, because it was completed before the husband promised to repay it.
Furthermore, where a contract exists between two parties and one party, subsequent to formation, promises to confer an additional benefit on the other party to the contract, that promise is not binding because the promisee's consideration, which is his entry into the original contract, had already been completed or "used" at the time the next promise is made.
After the sale, Thomas promised Roscorla that the horse was sound; the horse turned out to be vicious. It was held that Roscorla could not enforce the promise, as the consideration given for entering into the contract to buy the horse had been completed by the time the promise was made; in a sense, the consideration was "used up". The rule that past consideration is not good consideration is subject to the exception discussed by the Privy Council in Pao On v Lau Yiu Long. There must be some kind of connection between a promise and the consideration offered to support the promise.
It is no consideration to "refrain from a course of conduct which it was never intended to pursue". A promise is enforceable if it is supported by consideration, that is, where consideration has moved from the promisee. For example, in the case of Tweddle v Atkinson John Tweddle promised William Guy that he would pay a sum of money to the child of William Guy, and likewise William Guy promised John Tweddle that he would pay a sum of money to the child of John Tweddle, upon the marriage of the two children to each other.
However, William Guy failed to pay the son of John Tweddle, who then sued his executors for the amount promised. It was held that the son could not enforce the promise made to his father, as he himself had not bibding given consideration for it - it was his father who had done so instead. The son didn't receive any consideration, so he cannot enforce the promise. This particular rule of consideration forms the basis of the doctrine of privity of a contract, that is, only a bindinv to a contract is permitted to sue upon that contract's terms.
Note that the doctrine of privity has been somewhat altered by the Contracts Rights of Third Parties Act Therefore, consideration from the promisee was indulgent of the claim. Although consideration must move from the promisee, it does not necessarily have to promkse to the promisor.
The promisee may provide consideration to a third party, if this is agreed at the time the parties contracted. The offeree must provide wuat, although the consideration does not have to flow to the offeror. For example, it is good consideration for person A to pay person C in return for services rendered by person B.
If there are joint promisees, then consideration need only to move from one of the promisees. If the promisee provides what he was required by public law to do in any event in return for a promise, promised performance of existing pgomise is not good consideration.
In Collins v Godefrey Godefrey promised to pay Collins for his giving of evidence. It was held that Collins could not enforce the promise as he was under a os duty to give evidence in any event.
However, if the promisee provides more than what public duty imposes on him, then this is good consideration. In Ward v Byham a mother was under a statutory duty to look after her child.
It was held that notwithstanding the statutory duty imposed on the mother, she bindijg enforce the promise since the act of keeping the baby 'happy' provided additional consideration.
Promising to perform a pre-existing duty owed to one's contracting party also fails to make good consideration. The general rule is that if a creditor promises to discharge knd debt bbinding return for a fraction of payment, in paying the agreed fraction, the promisee is not providing consideration for the ie, as this is merely part performance of a contractual duty already owed. During the voyage, two men deserted.
Myrick promised he would increase Stilk's wages if Stilk agreed to honour his contract in light of the desertions. Stilk agreed and on return to port, Myrick refused to pay him the extra wages. It was held that Myrick's fresh promise was not enforceable as the consideration Stilk had provided for it, the performance of a duty he already owed to Myrick under contract, was not good consideration for Myrick's promise to increase his wages. They sub-contracted carpentry work to Williams.
It became apparent that Williams was threatened by financial difficulties and would not be able to complete his work on time. This would have breached a term in the main contract, incurring a penalty. Williams continued to work on this basis, but soon it became apparent that Roffey Brothers were not going to pay the additional money.
He ceased work and sued Roffey Brothers for the extra money, for the eight flats he what does mrp mean in manufacturing completed after the promise of additional payment.
The Court of Appeal held that Roffey Brothers must pay Williams the extra money, as they had enjoyed practical benefits from the promise they had made to Williams. The benefits they received from it include: Having the work completed on time, not having to spend money and time seeking another carpenter and not having to pay the penalty.
Prlmise the circumstances, these benefits were sufficient to provide consideration for the promise made to Williams of additional payment. It now seems that the performance of an existing duty may constitute consideration for a new promise, in the circumstances where no duress or fraud are found and where the practical benefits are to the promisor.
The performance of an existing contractual duty owed to the promisor is not good consideration for a fresh promise given by the promisor. However, performance of an existing contractual duty owed to a third party can be good consideration, see further below.
According to the Court klnd Appeal, it is unlikely that either avoiding a breach of contract with a third party, avoiding the trouble and expense of engaging a third party to carry out work or avoiding a penalty clause in a third party contract will be promisee "practical benefit". In Simon Container Machinery Ltd v Emba Machinery ABthe practical benefit was held to be the avoiding of a breach of contract, which was clearly not an extension of the principle.
This is true unless the debtor provided fresh consideration for the promise. The following, mentioned in Pinnel's Case and confirmed by Nnot v. Tripp may amount to fresh consideration:.
Another exception is that part payment of the debt by a third party as consideration for a promise to discharge the creditor from the full sum, prevents the creditor then suing the debtor for full payment see Welby v Drake.
The Court of Appeal, in Re Selectmove Ltd stated that the practical benefit doctrinearising from Williams v Roffey cannot be used as an additional exception to the rule. In that case, it was held that the doctrine only applies how to get rid of poison ivy plant the original promise was a promise to pay extra and not to pay less.
In any event, the equitable principle of promissory estoppel may provide the debtor with relief. The Court of Appeal in June in MWB v Rock Advertising revisited the issue of whether the practical benefit doctrine could be applied to decreasing pacts or agreements to accept less. Arden LJ and Kitchin LJ both endorsed this approach indicating how to get the right consistency for acrylic nails part payment bidning with practical benefit could be enough to support a promise to accept less.
The decision has been criticised as extending the practical benefit test beyond its limits. Consideration for a promise can be the performance of us contractual duty owed to kijd other than the promisor. In Shadwell v ShadwellCayley Shadwell was what is the relationship between mass and volume a contractual duty with a third party to marry.
It was held that Cayley Shadwell marrying was good consideration, notwithstanding that he was obliged by a contract with a third party to marry in any event. A promise to perform a pre-existing contractual duty owed to a third party as opposed to the performance of that duty may also amount to consideration. From Wikipedia, the free encyclopedia.
Something of value promised by parties to a contract to each other. This article is about consideration under English law. For an American focused article, see Consideration in American law.
See also: Privity in English law. Main article: Estoppel English law. I promise you that I will do X, in consideration for which you promise me that you will do Y".
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A promise is not binding under Subsection (1) if the promisee conferred the benefit as a gift or for other reasons the promisor has not been unjustly enriched; or to the extent that its value is . Here are the key exceptions, situations in which a promise can be enforceable even though there is no consideration for it: Promises to pay past debt: Most courts hold that a promise to pay a past debt that is no longer legally enforceable is binding without consideration, if it is in writing. Promise to pay for benefits received: Similarly, a promise to pay for services already received is enforceable in many . Furthermore, where a contract exists between two parties and one party, subsequent to formation, promises to confer an additional benefit on the other party to the contract, that promise is not binding because the promisee's consideration, which is his entry into the original contract, had already been completed (or "used") at the time the next promise is made.
Join Stack Overflow to learn, share knowledge, and build your career. Connect and share knowledge within a single location that is structured and easy to search. How do I bind the failure function to the this object in the context of bar. I know I will have to use myFunc. As robertklep says, you can immediately call.
However, it might be more readable to use a named function instead, and pass it into. If you are only interested in the object this of the enclosing scope, and you are using ECMA6 or later, you could use arrow functions. It would look like:.
You could find more examples in MSD Using promises. What I found very useful is to bind each then 's [function] handler to the one empty object, so each function could have the access to it. Then the user can set and get the properties in each Promise by this keyword. The unit test frameworks works similarly. Stack Overflow for Teams — Collaborate and share knowledge with a private group.
On the other hand, you might want to use the same failure callback with multiple promises but perhaps bind it to different values for this Both approaches have their place, and the important thing is to realise they will both work just as well.
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