Contract - lesson 2 - Consideration.pdf - 1 “Price” paid by one party in return to a promise/act done by another party S2(d Contracts Act When at

Contract - lesson 2 - Consideration.pdf - 1 “Price”...

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“Price” paid by one party in return to a promise/act done by another party. S2(d) Contracts Act : When at the desire of the promisor, the promisee or any other person a. has done or abstained from doing, or b. does or abstains from doing, or c. promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise These are the consideration or value paid for the promise made by the promissor. @SalmiahS2017 1 9/27/2017
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CATEGORIES OF CONSIDERATION EXECUTORY EXECUTED PAST PROMISE IS MADE IN RETURN FOR ANOTHER PROMISE PROMISE IS MADE IN RETURN FOR THE PERFORMANCE OF AN ACT PROMISE MADE IN RETURN FOR AN ACT WHICH HAS BEEN PERFORMED K.MURUGESU v NADARAJAH LAMPLEIGH v BRATHWAITE @SalmiahS2017 2 9/27/2017
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WHY A CONTRACT MUST HAVE CONSIDERATION ? Section 10 (1) : All agreements are contract if they are made … for a lawful consideration ..” Section 26 : An agreement made without consideration is void @SalmiahS2017 3 9/27/2017
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