Contract Law - Meaning of 'consideration'
What this page is about: What is meant by consideration - what counts as consideration?
Valuable consideration has been defined as some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other at his request1. It isn't necessary that the promisor should benefit by the consideration. It is sufficient if the promisee does some act from which a third person benefits, and which he would not have done but for the promise2.Therefore, consideration for a promise may consist in either3 some benefit conferred on the promisor4, or detriment suffered by the promisee5, or both6. On the other hand, that benefit or detriment can only amount to consideration sufficient to support a binding promise where it's causally linked to that promise7. What's more, consideration must be distinguished from both a motive and a condition8.
Consideration may be executed or executory9, but it may not be past10; it need not be adequate11, but it must be of some value12; and it must move from the promisee13.
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Also in this section
The general rule
Consideration and motive distinguished
Consideration and condition distinguished
Benefit to the promisor
Detriment to the promisee
Consideration must move
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