What is the function of consideration?

What is the function of consideration?

In addition to providing evidence that a contract exists, consideration also has the cautionary function of guarding the promisor against ill-considered action; the deterrent function of discouraging transactions of questionable utility; and a channelling function of enabling interested persons to distinguish …

What is a doctrine of consideration?

The doctrine of consideration requires that every contract must be supported by some form of consideration. The promise must be supported by the consideration, and it only can be if: The promise was made by both parties who mutually agreed to the promise.

What is the importance of consideration?

Consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. Consideration must be of value and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration).

What is the role of consideration in contract law?

Consideration is one of the most important parts of a contract because it states why each party is joining the agreement. Consideration can be the exchange of money for products or services, or it can be a trade of one type of product for another type of product.

What is the basic function of consideration within a contract?

Consideration is a key ingredient for an enforceable contract. It is concerned with what one party gives or promises in exchange for a promise or performance from another party. It requires ‘something of value’ to be given for the promise.

Is the doctrine of consideration necessary?

To create a legally enforceable contract, consideration must be present. However, when a contract is made by deed, consideration is not a requirement. Traditionally, the doctrine of consideration has been defined as either a detriment to the promisee or a benefit to the promisor.

What is the purpose of the doctrine of consideration in English contract?

With the doctrine of consideration, it ensures that both parties will benefit from the contract, and that there will be a lower possibility that one party is being taken advantage of. There will then be fairness ensured in the contract.

What is an important characteristic of consideration?

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. In simple terms, anything of value that is promised by one party to another can be viewed as a consideration.

What is consideration in law with example?

When we say that consideration is an act it acquires an affirmative tone. For example A promise to pay ` 10,000 to B if B will sell his mobile to him. When we say that consideration is abstinence or forbearance it acquires negative tone.

What are the main criticisms of the doctrine of consideration?

The main criticism is that the finding of consideration merely signifies the conclusion, rather than explaining why, a promise is enforceable.

Should the “doctrine of consideration” be abolished?

Secondly, the doctrine of consideration has since long been established in common law, and is a recognized chapter in all law textbooks. Despite its shortcomings, it simply cannot be replaced outright. Therefore, the doctrine of consideration should undergo certain reforms, but it should not be completely abolished.

What are the forms of consideration?

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 the definition of sufficient consideration?

Sufficient Consideration Law and Legal Definition. Sufficient consideration is a consideration deemed by law to be of sufficient value to support an ordinary contract between parties.

What does consideration mean?

Consideration(noun) thoughtful or sympathetic regard or notice. Consideration(noun) claim to notice or regard; some degree of importance or consequence. Consideration(noun) the result of delibration, or of attention and examonation; matured opinion; a reflection; as, considerations on the choice of a profession.