Consideration Mugger Notes

Consideration Mugger Notes - Consideration (Mugger Notes)...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Consideration (Mugger Notes) Problems of Definition : Many attempts made to define it, yet still no one definite illustration . Lord Mansfield’s 2 Approaches towards furnishing Consideration : (i) Evidence of parties’ intention to be bound (not vital criterion of contract) : If such an intention could be ascertained by other means, such as the presence of writing, consideration was unnecessary. (approach was rejected, thus 2 nd Approach) (ii) Moral obligation : Whenever a man is under a moral duty to pay money and subsequently promises to pay, the pre-existing moral duty furnishes consideration for the promise. In Eastwood and Kenyon (1840) , Lord Denman pointed out that moral duty approach would lead to the “virtual annihilation of consideration”. To give a promise was to accept a moral obligation to perform it. The 19 th Century proposed the : (i) Anti-thesis of Benefit and Detriment Approach P to prove either that he had conferred a benefit upon the D in return for which the D’s promise was given or that he himself had incurred a detriment for which the promise was to compensate. Problems : - “Detriment” more appropriate to describe tortious situation than contractual one. - Approach assumes promises are binding, which is precisely what it is sought to prove. - Has to be understood in a highly technical sense. This approach was followed by : (ii) Language of Purchase and Sale P must show that he has bought D’s promise either by doing some act in return for it, or by offering a counter-promise. Advantages : - Easier to understand. - Corresponds more happily to normal exchange of promises. - Emphasizes commercial character of Common Law contract. Problems : - When attempting to engage in practical application of definition, one will often be thrown back to “Benefit-Detriment” Analysis. 1. Introduction Theoretical Definition : A valuable consideration in the sense of the law, may consist either in same right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other ”. --- [ Currie v Misa (1875) ] Involves the notion of reciprocity or bargain (mutuality) in a contract. Only agreements supported by Consideration are enforceable. Serves to exclude : Gratuitous promises – promises for no return at all. Unrequested detriment eg. decision to buy a car after being promised a sum of money. The doctrine is not applicable to contracts under seal, their enforceability is derived by virtue of their form. 2. Definition 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A. Benefit-Detriment Analysis Either, that the promisee has conferred a benefit on the promisor in return for which the promisor gave his promise; or That the promisee has himself incurred a detriment for which the promisor’s promise was to compensate. NB
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/07/2012 for the course LGST 101 taught by Professor Hsu during the Spring '11 term at Singapore Management.

Page1 / 14

Consideration Mugger Notes - Consideration (Mugger Notes)...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online