Consideration in English law

Consideration referred to in the law of England and Wales, a requirement for the enforceability of contracts.

Definition

Following the principle of Consideration can a creditor has a contractual obligation only obtain if the creditor has given the debtor ( or a third party) also rendered in return. The conditions of consideration are controversial in modern English contract theory. Classically, consideration defined as follows:

"A valuable consideration, in the sense of the law, june Consist Either in some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility givenName, Suffered under or taken by the other. "

" Valid consideration within the meaning of the law may consist either in accruals of a right, interest, profit or benefit for a party or in a deferment, damage, loss or liability that are granted, suffers or takes over the other party. "

Requirements

Adequacy

The courts do not check whether the consideration is reasonable in relation to the contract performance.

This means that even the smallest amounts are recognized as consideration. In Chappell & Co v Nestle (1960 ) the House of Lords decided that a chocolate paper constitutes effective consideration and thus there was a contract:

Fulfill a statutory duty

After the fulfillment of traditional conception of statutory duty could not be a consideration. In its judgment in Ward v Byham decision (1956 ), Lord Denning presented for the first time in opposition to the traditional view, but in this point, the other judges of the Court of Appeal did not share his opinion. Another attack on the traditional rule, the decision Williams v Roffey Brothers ( 1991) is seen.

Promissory estoppel

The exception was of Lord Denning in the case of Central London Property Trust Ltd v High Trees House Ltd (1947 ) KB 130 developed and is known as " promissory estoppel ." According to this principle also promise can be enforced if the creditor has acted in reliance on the promise he had to rely on his own detriment to the fulfillment of the promise.