14 Aug 2012 “Consideration” is something that has value in the eyes of the law and given in It can be understood using the “benefit-detriment analysis''. American Contract Law I (along with its sister course Contracts II) provides a The benefit detriment conception of consideration almost always looks to whether   Was there consideration for the defendants' promise made on 9 April 1986 to pay pay the "bonus," they derived no benefit in law, since the plaintiff was promising to confers a benefit on the promisor without in fact suffering any detriment."

(Sufficient consideration if detriment suffered by promisee at request of promisor) It follows from this that consideration must move from the promisee but need move to the promisor. For example, if promisor (A) asks promisee (B) to pay (C) a sum of money as consideration for A's promise to B, that will be good consideration. However, if promisor (A) asks (C) to provide a payment as consideration for A's promise to B, that will not constitute good consideration (there is no detriment to B in Bargain theory has largely replaced benefit-detriment theory in modern contract theory, but judges often cite both and may use both models in their decisions. These theories usually overlap; in standard contracts, such as a contract to buy a car, there will be both an objective benefit and detriment. However, there are certain contracts which satisfy one but not the other. For instance, a deal in which the promisee feels subjectively relieved, but has not actually gained any legal rights The two main rules of consideration is that it has to move from the promisee but need not move to the promisor and that it need not be adequate but must be sufficient. This benefit-detriment analysis of contracts serves to ensure that no party enters a contract that is not beneficial to himself in one way or another. Today, the benefit-detriment theory of consideration holds less weight than it did in the time of Hamer v. Sidway , but it is still relevant. Business owners need to be aware of the many theories which govern the law of contracts so that they can make informed decisions. Consideration is a concept of English common law and is a necessity for simple contracts but not for special contracts. The concept has been adopted by other common law jurisdictions, including the US. The court in Currie v Misa declared consideration to be a “Right, Interest, Profit, Benefit, or Forbearance, Detriment, Loss, Responsibility”. Thus, consideration is a promise of something of value given by a promissor in exchange for something of value given by a promisee; and typically In contract law consideration is concerned with the bargain of the contract. A contract is based on an exchange of promises. Each party to a contract must be both a promisor and a promisee. They must each receive a benefit and each suffer a detriment. This benefit or detriment is referred to as consideration. enough when he accepts the consideration and the party as a result, undertakes some burden or loses something which may be valuable in the contemplation of the law. 7 In a word, the “benefit-detriment” theory is a kind of substantial consideration theory, the centre concerning of this theory is about the benefit and detriment of both parties, but neither about the process and procedure of transaction and negotiation, nor about subjective meanings of both parties.

In many jurisdictions consideration is not an essential element of a contract – it is some 'detriment' on behalf of the promisee, this detriment can take the form of every Saturday night) and the promisor need not receive any tangible benefit.

Section A: Fundamental Policies and Values of Contract Law It is sometimes said that consideration requires benefit and (23 A. detriment B. disadvantage C. all exist in order for consideration to be valid. Detriment to the promisee; — This can be either a legal detriment to the promisee or legal benefit to the promisor. The legal definition of Consideration is Some right, interest, profit or benefit accruing to the one party of a contract, or some forbearance, detriment, loss or  4 Dec 2010 to the consideration of contract practice in England. in the least follow that the presence of benefit or detriment is always a sufficient reason.

Contract Law > Consideration and Promissory Estoppel > Flashcards either by incurring some detriment or by conferring a practical benefit on the promisor. 2 

The legal definition of Consideration is Some right, interest, profit or benefit accruing to the one party of a contract, or some forbearance, detriment, loss or  4 Dec 2010 to the consideration of contract practice in England. in the least follow that the presence of benefit or detriment is always a sufficient reason. Detrimental reliance is a legal concept under the law of contracts. Ordinarily, a valid contract requires a proper exchange of consideration between the parties.

First, by benefit and detriment are meant legal benefit and legal detriment as LAW REVIEW ing the definition of consideration in such contracts. That sug-.

The early view of consideration defined it as benefit to the promisor or detriment to the prom- isee. See W. STORY, supra note 12, § 431. The stress of  Professor Cartwright observes that: “[w]ithin the law of contract, consideration is probably concept of “practical benefit” as consideration and via promissory estoppel. promise, but, rather, to avoid the detriment occasioned by the promisee's  What are the basic requirements for making a valid contract? (iv) Consideration (benefit given to the other party). In contract law, consideration means a detriment to the person who made the promise or a benefit conferred on the other party,  Boris Kozolchyk, Contracts -- Consideration -- Pre-Existing Duty, 13 U. Miami L. statement that nevertheless there is no "legal benefit" or "legal detriment" is an 

There are two different theories or definitions of consideration: Bargain Theory of Consideration and Benefit-Detriment theory of consideration. 1) Under the Benefit-Detriment theory , an adequate consideration exists only when a promise made to the benefit of the promisor or to the detriment of the promisee, which reasonably and fairly induces the promisor to make a promise for something else for the promisee.

What are the basic requirements for making a valid contract? (iv) Consideration (benefit given to the other party). In contract law, consideration means a detriment to the person who made the promise or a benefit conferred on the other party,  Boris Kozolchyk, Contracts -- Consideration -- Pre-Existing Duty, 13 U. Miami L. statement that nevertheless there is no "legal benefit" or "legal detriment" is an  Hitherto, (except in unilateral contract situations) consideration subsisted in the The Court held that the 'practical benefit' that accrued to the promisor from the detriment to the promisee is necessary to trigger the operation of the law of  consideration can be a benefit to the promissor or detriment to the promisee. 4.

Detrimental reliance is a legal concept under the law of contracts. Ordinarily, a valid contract requires a proper exchange of consideration between the parties. The first is the “benefit-detriment theory”, in which a contract must be either to the benefit of the promisor or to the detriment of the promisee to constitute consideration. The second is the “bargain theory”, in which the parties subjectively view the contract to be the product of an exchange or bargain. The bargain theory has largely replaced the benefit-detriment theory in modern contract theory, instance, a deal i which the promisee feels subjectively relieved, but hasn’t In contract law, consideration is a detriment to the promisee and a benefit to the promisor. In order to make for a valid contract and for legal detriment to have been suffered, consideration must be exchanged. A pre-existing duty to perform does not constitute legal detriment and fails to make a contract enforceable. Consideration, in contract law, an inducement given to enter into a contract that is sufficient to render the promise enforceable in the courts. The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person. Today, the benefit-detriment theory of consideration holds less weight than it did in the time of Hamer v. Sidway , but it is still relevant. Business owners need to be aware of the many theories which govern the law of contracts so that they can make informed decisions.