Consideration

What is Consideration in Contract Law?

Consideration is a fundamental principle in contract law that refers to something of value exchanged between parties entering into a contract. It can take the form of money, services, goods, or a promise to refrain from doing something. Without consideration, a contract is generally not enforceable.

In Context

Consideration is essential because it distinguishes a contract from a gift. For example, if you agree to pay £100 for a bicycle, the £100 serves as consideration for the bicycle. A notable case illustrating this principle is Currie v. Misa (1875), where the court defined consideration as a "right, interest, profit, or benefit" to one party or a "detriment, loss, or responsibility" incurred by the other. In this case, the absence of consideration led to the conclusion that the agreement was unenforceable.

See Also

• Promissory Estoppel

• Capacity to Contract

• Legality of Object

Learn More

To gain a deeper understanding of consideration and its role in contract law, explore our Contract Law Notes for detailed explanations and illustrative examples.