Consideration is a something that is worth and has value such as an item or services. It was concerned with the bargain of the contract and it is based on an exchange of promises. Each party receives a benefit and another party suffers a detriment. The benefit or detriment is called as consideration. According to the S. 2(d) of Contract Acts 1950, it said that ‘’when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.’’
Consideration may be executory, where a promise is given for a promise which means one party had executed and another party is yet to perform. It also may be executed, where an act or forbearance is given for a promise. The deal is happen right now and right here. The principle of the consideration is the consideration must be sufficient but need not be adequate. The case example is Chappel v Nestle [1960] AC 87 House of Lords. Chappel was an owner of the musical copyright and Nestle as a part of promotion to offer the records. Nestle held a sales promotion whereby if persons sent in 3 chocolate bar wrappers and a postal order for 1 shilling …show more content…
Ousten want to trade his old van for a new van with defendant, Scammell. So they entered an agreement saying that Ousten trade his old van for 100 pounds and Scammell will only supply a new van for 2 years with hire purchase term with 286 pounds. However, there was some argument between them due to it was too uncertain and Scammell refused to give the new van. At last, shown that there do not have any certainty of the agreement because the agreement on the price do not had any relation to hire purchase term whether the instalments are pay in monthly or weekly. It shown an uncertainty based on the instalment. Therefore, this agreement is
Consideration may be executory, where a promise is given for a promise which means one party had executed and another party is yet to perform. It also may be executed, where an act or forbearance is given for a promise. The deal is happen right now and right here. The principle of the consideration is the consideration must be sufficient but need not be adequate. The case example is Chappel v Nestle [1960] AC 87 House of Lords. Chappel was an owner of the musical copyright and Nestle as a part of promotion to offer the records. Nestle held a sales promotion whereby if persons sent in 3 chocolate bar wrappers and a postal order for 1 shilling …show more content…
Ousten want to trade his old van for a new van with defendant, Scammell. So they entered an agreement saying that Ousten trade his old van for 100 pounds and Scammell will only supply a new van for 2 years with hire purchase term with 286 pounds. However, there was some argument between them due to it was too uncertain and Scammell refused to give the new van. At last, shown that there do not have any certainty of the agreement because the agreement on the price do not had any relation to hire purchase term whether the instalments are pay in monthly or weekly. It shown an uncertainty based on the instalment. Therefore, this agreement is