abstained from doing or dies or promises something such act is called a

Abstained from doing or dies or promises something

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abstained from doing or dies or promises something, such act is called a consideration” This section defines that, ‘consideration’ is an act or abstinence or promise by the promisee or any other person, as required by the promisor in return for his promise. It means that, consideration is given or done by one party as required by the other party in return for his promise. Consideration is something which has a ‘value’ in the eyes of law and it becomes the basis of the contract. It is a ‘price’, which is paid by one party in return for a promise or act done by another party. Basically, consideration exists when each party will gain and lose something under the contract. 5
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CURRIE v MISA (1875) Held : A valuable consideration, in the sense of the law, may consists of some rights, interests, profits or benefits accruing to the one party or some forbearances, detriments, losses or responsibilities given, suffered or undertaken by the other. There are 3 categories of consideration. In this case, Executory Consideration (Promise in return to a Promise) as the element. It is when a person promises something, and in return for his promise the other party promises to do or forbear or suffer something. It is a promise in return for another promise (mutual promises). Thus, mutual promise constitute a valid contract because the promise given is the consideration for each other promises. For example in this case, Adila entered and agrees to a contract to sell her handphone to Munir for RM250.00 and Munir’s promise to pay the sum of RM250.00 is the consideration for Adila’s promise to sell the house, and Adila’s promise to sell her handphone is the consideration for Munir’s promise to pay the RM250.00. These are lawful consideration. K. MURUGESU V NADARAJAH The appellant agreed to sell, and the respondent agreed to buy, a house from the appellant, The agreement was written on a piece of paper. Later, the appellant refused to perform the contract and argued that there was no consideration in the agreement and therefore the contract is void. 6
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Held : The agreement must be seen to be a case of executory consideration. A promise is made by one party in return for a promise made by the other. In such a case, each promise is the consideration for the other. Furthermore, rules governing consideration also must be included. So in this case is Adequacy of Consideration. Under the law of contract, one of the essential elements is the consideration. So long consideration is available in the agreement the agreement is binding. Otherwise, it is void. However, the consideration is not necessarily be adequate. If the promisor obtained whatever he asked for, in return for his promise, he is said to have received sufficient or adequate consideration and is therefore bound to the contract. It is not important if his promise is more valuable than the price he asked for. The courts are not concerned with the question whether the promisor has received adequate consideration or not. This is because adequacy of consideration is not important to form a valid contract. This rule is derived from Explanation 2 to section 26 of the Act:
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