12 Consideration

Subject(s):

Agency by estoppel — Construction of contract — Formation of contract — Interpretation of contract — Performance of contract — Validity of contract

This chapter focuses on the doctrine of consideration, the most unique aspect of the common law of contract, not replicated in any other system. It first considers the history and then says something about the function and definition of the doctrine before going on to discuss the rules in detail. These include the adequacy of consideration; nominal consideration; situations where it has been held that a promise or act is not acceptable as consideration; consideration must be referrable to the promise; consideration must move from the promisee (but not necessarily to the promisor); past consideration is not consideration; consideration must not be illusory; performance of existing legal duties; part payment of a debt is not consideration for a promise to discharge debt; exceptions to the consideration rules; and estoppel.