CONSIDERATION

Consideration from the promisee normally takes a form of Payment of Money. But, it could consist of some other service to which promisor might agree. Important – The promisee MUST provide something in return for the promise of the promisor; To convert a bare promise made by the promisor in to a valid binding promise.

Past Consideration Something already completed before the promise is made. This is NOT valid consideration in the eyes of the law. Consideration is considered past when – it consists of some service or benefit previously rendered to the promisor.

Consideration Must Move From The Promisee Only a person who has provided consideration can enforce that promise as a contract.

Consideration Must Be Sufficient But Need Not Be Adequate Courts will NOT investigate the fairness of the consideration as long as; Recognized by the law as having a value. It is acceptable by courts. Mountford V. Scott Paid $1 to purchase a house. It was deemed good consideration. Chappell V. Nestle Three wrappers given by the defendant’s chocolate was considered good consideration for the purchase of a gramophone.